Capital Alliance Research (CAR) is an autonomous, multidisciplinary Centre for advanced economic research. Widely recognized as a Centre of excellence, it is one of Asia’s leading in the fields of economic and social development.
Capital Alliance Research: Who We Are
Continuing Commitment to Excellence
CAR is your source for comprehensive, up-to-date information on the practice of economic development. Our Capital Alliance Research Partners (CARP) program generates original, cutting-edge research designed specifically to serve practicing economic developers and to advance the economic development profession as a whole.
Part think tank, part network, CARP is an exclusive membership level of CAR. Membership in CARP gives economic development leaders the chance to shape the research agenda for CAR – the world’s premier association in the field – and explore impactful topics in partnership with their peers
Corporate Sector Ratings
CAR pioneered the first corporate sector rating in 1990. Today, one out of every two companies in Asia is rated by CAR Ratings. We have an unmatched coverage of about 67 sectors belonging to 29 industry groups.
Our probability of default approach on a standardised 20-point rating scale is approved by the Securities and Exchange Board of Asia and the Reserve Bank of Asia.
CAR Ratings follows a three pronged approach to arrive at the standalone credit rating of a given firm, comprising evaluation of:
- Business risk – factors in industry risk, market position, and operating efficiency of the entity.
- Management risk – considers competence, integrity and risk appetite of the firm’s management.
- Financial risk – assesses accounting quality, present and future financial position, cash flows, and financial flexibility of the firm. Project based risks are also factored in at this stage.
Finally, the support obtained from a parent, group, or joint venture(s) is considered, to arrive at the overall credit rating.
Over and above this primary approach, our analysis takes into account sector specific nuances. We have so far published detailed rating criteria for 38 industries in the manufacturing and service sector and infrastructure sector.
CAR Ratings offers a wide palette of corporate sector instrument ratings including:
- Bank loan ratings
- Long-term debt instruments such as bonds, non-convertible debentures (NCDs), and preference shares
- Short-term debt instruments such as commercial papers (CPs) and short-term NCDs
- Fixed deposits (FDs)
The methodology and rating framework adopted by CAR Ratings for evaluating the credit risk of various instruments issued by Asian corporates is largely similar.