Regulatory

KBRA UK Disclosures

United Kingdom Registration

KBRA UK is registered by the Financial Conduct Authority (“FCA”) pursuant to the Regulation (EC) No. 1060/2009 of the European Parliament and of the Council of September 16, 2009, on credit rating agencies (as amended) and as modified by The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019.

Code of Conduct

The KBRA Code of Conduct can be found here.

Conflicts of Interest

A list of all identified conflicts of interest relating to KBRA UK credit rating activities can be found here.

KBRA Europe and KBRA UK maintain the codes, policies and procedures listed below to identify, eliminate or manage and disclose its conflicts of interest.

General Disclosures

Ancillary Services

KBRA UK does not provide ancillary services.

Clients from which KBRA UK Receives More than 5% of its Annual Revenue

In accordance with Regulation (EC) No. 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (as modified by The Credit Rating Agencies (Amendment etc.)(EU Exit) Regulations 2019), please find the list of rated entities or related third parties from which KBRA UK received more than 5% of its annual revenue for the year ended 31 December 2022.

Compensation Arrangements

The general nature of the compensation arrangements of KBRA UK are contained in the Code of Conduct.

KBRA UK Disclosure of Initial Reviews and Preliminary Ratings

Information on entities or debt instruments where KBRA UK has provided an initial review or preliminary rating can be found here.

Material Modifications to Systems, Resources or Procedures

KBRA’s approach to the development and maintenance of its systems, resources and procedures is contained within its Code of Conduct.

Further information on internal controls can be found in the KBRA Internal Controls Policy.

Any material modification to systems, resources or procedures will be disclosed here by the publication of the revised Code of Conduct and the revised Internal Controls Policy for Europe and the UK.

Methodologies, Models and Key Rating Assumptions

Relevant information on KBRA’s policy on methodologies, models and key rating assumptions can be found in the KBRA Code of Conduct and KBRA’s methodologies and models.

Publication of Credit Ratings and Other Related Communication

KBRA’s policy on the publication of credit ratings and related communication is contained in the Code of Conduct.

Ratings Endorsement in the UK

In accordance with the CRAR SI, KBRA UK endorses select public credit ratings issued by its credit rating affiliate, Kroll Bond Rating Agency, LLC (“KBRA US”), which is located in the United States and registered as a Nationally Recognized Statistical Rating Organization by the U.S. Securities & Exchange Commission. Also in accordance with the CRAR SI, KBRA UK endorses select public credit ratings issued by its credit rating affiliate, Kroll Bond Rating Agency Europe Limited (“KBRA Europe”), which is located in Ireland and registered as a Credit Rating Agency by the European Securities and Markets Authority. KBRA UK endorses these credit ratings to be eligible for use in the United Kingdom (UK) for regulatory purposes.

KBRA UK’s endorsement activity in the UK complies with the CRAR SI.

The endorsement status of ratings issued by KBRA US and KBRA Europe is available on the relevant ratings page of the KBRA website. Ratings Press Releases for endorsed ratings will indicate that the credit rating is endorsed by KBRA UK for use in the UK.

KBRA UK updates its outstanding credit ratings, including endorsed ratings, at least on an annual basis.

Transparency Report

In accordance with Regulation (EC) No. 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (as amended) and as modified by The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, please find Transparency Reports for Kroll Bond Rating Agency UK Limited below.

Unsolicited Credit Ratings in the UK

The Unsolicited Ratings Policy can be found here and the Unsolicited Ratings Procedure can be found here.

KBRA UK Ownership Disclosures

United Kingdom regulations require disclosure where there are certain relationships between rated entities and shareholders of KBRA UK. General disclosures concerning KBRA UK’s ownership may be found here here. Shareholder disclosures may be found here.