Rating-Agentur Expert RA GmbH, Delivering Independent Credit Ratings

Rating-Agentur Expert RA GmbH is a leading credit rating agency that delivers independent credit ratings. Founded in 2002, the agency has established itself as a trusted provider of credit ratings.

With a strong focus on providing unbiased and accurate ratings, Expert RA GmbH has built a reputation for its expertise and professionalism. The agency's ratings are widely recognized and respected by financial institutions and investors.

Expert RA GmbH's ratings are based on rigorous analysis and evaluation of a company's financial health, management, and business strategy. This thorough approach ensures that investors have a clear understanding of a company's creditworthiness.

The agency's commitment to independence and objectivity is evident in its ratings, which are free from conflicts of interest and influenced solely by a company's creditworthiness.

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Rating-Agentur Expert RA GmbH operates within a well-defined regulatory framework. The European Securities and Markets Authority (ESMA) has registered the agency as a Credit Rating Agency (CRA) under Regulation (EC) No 1060/2009.

This registration was effective from 1 December 2015. As a result, Rating-Agentur Expert RA GmbH received official status as an External Credit Assessment Institution (ECAI).

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The Principle of Independence is a crucial aspect of the regulatory framework. It ensures that the rating process is free from external influence and that the Agency's opinion remains unbiased.

The rating process guards against the influence of government institutions, governance bodies, or owners. This is achieved through Expert RA's equity holding structure, which fully aligns with the regulator's current requirements and excludes potential conflicts of interest.

The Methodology Department is independent from the Agency's analytical and other services. It ensures that the rating methodologies are adopted and reviewed/adjusted, and that the Rating Service is consulted regarding the use of rating methodologies in their rating process.

The Agency's standing Validation Department, independent of other business units, enables the quality control of existing methodologies. This ensures that the rating process remains robust and reliable.

The business process architecture, the purpose-built and implemented information systems, and the firewall principle all play a role in creating a reliable administrative and technological barrier between the analytical and commercial services. This prevents them from influencing one another.

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The European Union has a direct supervisor of credit rating agencies called the European Securities and Markets Authority (ESMA).

ESMA has registered Rating-Agentur Expert RA GmbH as a credit rating agency under Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009.

Rating-Agentur Expert RA GmbH received an official status as an External Credit Assessment Institution (ECAI) in 2015.

This status allows the credit ratings issued by the agency to be used for regulatory purposes on financial markets of the European Union.

As of 1 December 2015, credit ratings from Rating-Agentur Expert RA GmbH can be used on European Union financial markets.

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Sovereign ratings are conducted by Rating-Agentur Expert RA GmbH, which reviews sovereign ratings on a half-year basis to assess the economic situation of countries.

They prepare reports on countries such as Russia, Kazakhstan, Kyrgyzstan, Armenia, Belarus, Germany, Uzbekistan, Cyprus, China, and the USA.

Rating-Agentur Expert RA GmbH issues sovereign government ratings, which reflect the agency's opinion on a government's ability to meet current and future financial obligations.

The country credit environment rating is a measure of systemic credit risks compared to other countries worldwide.

Rating-Agentur Expert RA GmbH offers a range of services, including assigning credit ratings to financial institutions, insurance undertakings, non-financial companies, and public finance, as well as sovereign ratings for countries and regions.

Their expertise extends to rating the creditworthiness of banks, such as the Russian bank JSC CB "Assotsiatsiya", which received the agency's first public non-sovereign rating.

The agency also provides ratings for insurance companies, like Balcia Insurance SE in Latvia, which received a rating of creditworthiness in May 2017.

Rating-Agentur Expert RA GmbH ensures that its rating activities align with federal legislation and international regulatory best practices.

In addition to these services, the agency has also issued credit ratings to Russian regions, including the Krasnodar region and Chuvash republic, in the beginning of 2017.

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Expert RA is a market leader in credit rating services, accounting for over 50% of ratings assigned in the Russian credit rating market. This dominance is evident in the number of entities rated, with 484 out of 790 entities rated in 2023 being Expert RA's customers.

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In 2022, Expert RA rated 757 entities, and this number increased to 790 in 2023. This growth demonstrates Expert RA's expanding influence in the market.

Expert RA is also a leader in ESG ratings, with 12 ESG ratings in 2022 and 19 in 2023. The company is among the signatories to the Principles of Responsible Investment (PRI) and has endorsed various ESG standards and principles.

Here is a breakdown of Expert RA's ESG ratings and other sustainability-related activities in 2022 and 2023:

Expert RA's organisational structure is designed to support its rating services and other activities. It includes several key units.

The Macroeconomic Analysis and Forecasting Department is a crucial part of the structure, providing essential analytical capabilities.

The Rating Service is a central unit, comprising six departments that focus on different types of ratings, including Credit Institution Ratings, Corporate Ratings, and Sovereign & Regional Government Ratings.

The Rating Service is further divided into six departments, each with its own specific area of focus.

The Methodology Department and the Validation Department are examples of units that are independent from the Rating Service, but still play important roles in the overall structure.

The Digital Transformation Service represents the technology organisational units, driving digital transformation within Expert RA.

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Expert RA is a leader in ESG ratings, consistently ranking high in the INFRAGREEN analytical platform's impact ranking of rating agencies. In 2022 and 2023, it was an absolute leader by the number of verifications, solicited ESG ratings, published ESG ratings, sustainability-themed analytical products, and organized issue-related events.

The agency has also developed expertise in Green Bond Second Opinions, providing independent opinions on how the framework of issued green bonds complies with the Green Bond Principles. This service is recognized by ICMA, which has added RAEX-Europe to its External Review Service Mapping.

Here are some key statistics on Expert RA's ESG and sustainability activities:

We believe in prioritizing the well-being of people and the planet.

Integrity is at the heart of our decision-making, guiding us to act with transparency and honesty in all our actions.

We strive to minimize our impact on the environment by reducing waste, conserving resources, and promoting sustainable practices.

Our commitment to social responsibility means we invest in initiatives that support the health and well-being of our communities.

We value diversity and inclusion, recognizing that diverse perspectives and experiences enrich our work and foster a culture of empathy and understanding.

By living our core values, we aim to make a positive difference in the world and contribute to a more sustainable future.

Green Bond Review is an essential step in ensuring the integrity of ESG investments. RAEX-Europe provides services for the issuance of Green Bond Second Opinion, which is an independent opinion that defines how the framework of the issued green bonds complies with the Green Bond Principles.

This opinion also assesses the issuer's environmental performance related to the eligible projects. RAEX-Europe issued a Second Opinion for the first Green Bonds issued in Russia by “RSB HMAO” Ltd. on 19 December 2018.

By obtaining a Green Bond Second Opinion, issuers can increase transparency and credibility in the market. The opinion is maintained by ICMA and can be found in the Environmental Finance Bond Database (EFBD).

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We're proud to be among the signatories to the Principles of Responsible Investment (PRI). Our commitment to responsible investment is a key part of our ESG leadership.

We adhere to various standards and principles, including the UN Sustainable Development Standards, ICMA's Sustainability-Linked Bond Principles, and LMA's Sustainability-Linked Loan Principles. We also follow the Russian Federation Government's Decree No. 1587 dated 21 September 2021 and Regulation of the Bank of Russia No. 706-P dated 19 December 2019.

We're a leader in the field of ESG ratings, with 12 ESG ratings in 2022 and 19 in 2023, according to our impact ranking on the INFRAGREEN analytical platform.

Here's a breakdown of our ESG ratings over the past two years:

We're proud to be on top of the impact ranking of rating agencies produced by the INFRAGREEN analytical platform, and we continue to lead the way in ESG leadership.