Chương I Nghị định 88/2014/NĐ-CP: Quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree provides credit rating services; and prescribes conditions on operation of credit rating agencies established and operating in Vietnam.

2. This Decree does not regulate the following activities:

a/ Sovereign credit rating;

b/ Rating of credit institutions by the State Bank of Vietnam;

c/ Credit rating by the Credit Information Center of the State Bank of Vietnam;

d/ Internal credit rating of credit institutions and foreign bank branches.

Article 2. Subjects of application

1. Credit rating agencies that are granted business eligibility certificates under this Decree.

2. Enterprises and organizations to be rated.

3. Organizations and individuals involved in credit rating activities.

Article 3. Credit rating services

1. Credit rating of enterprises and organizations;

2. Credit rating of debt instruments.

Article 4. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. “Report on credit rating result” means a report announcing the result of credit rating of a rated organization.

2. “Credit rating grades” means symbols denoting evaluated grades of the ability of rated organizations to honor their debt obligations.

3. “Debt instruments” means financial products which establish debt obligations, including bonds, bank loans and other financial products giving rise to debt obligations.

4. “Analyst” means a person who collects information, analyzes, assesses and rates the ability of a rated organization to honor its debt obligation.

5. “Service of credit rating of enterprises and organizations” means a service provided by credit rating agencies to analyze, assess and rate the ability of such enterprises and organizations to honor their debt obligations.

6. “Service of credit rating of debt instruments” means a service provided by credit rating agencies to analyze, assess and rate the ability of issuers of such debt instruments to honor their debt obligations at the time of rating.

7. “Rated organization” means an enterprise or organization that is subject to credit rating or has a debt instrument subject to credit rating as specified in Article 3 of this Decree.

8. “Business eligibility certificate” means the shortened title of the certificate of eligibility to provide credit rating services under this Decree.

9. “Credit rating contract” means a contract signed between a credit rating agency and a to-be-rated organization.

10. “Credit rating council” means a professional council set up by a credit rating agency for each credit rating contract to decide on and update credit rating grades and report on credit rating results.

11. “Affiliated persons” as defined in Clause 34, Article 6 of the Securities Law refers to individuals or organizations that are interrelated in the following cases:

a/ Parents, adoptive parents, spouses, children, adopted children and blood siblings of individuals;

b/ Organizations that have individuals who are staff members, directors or general directors or holders of over ten percent of outstanding voting stocks;

c/ Members of Boards of Directors, Control Boards, directors or general directors, deputy directors or deputy general directors and other managers of such organizations;

d/ Persons who, in their relationship with other persons, directly or indirectly control or are controlled by the latter or submit, together with the latter, to the same control;

dd/ Parent companies, affiliate companies;

e/ Contract relations in which a person represents another person.

12. “Paid-up charter capital” means the total charter capital amount actually contributed by shareholders or capital contributors to an enterprise as stated in the financial statement of such enterprise at the time of statement.

Article 5. Principles of credit rating activities

1. Independence and impartiality.

2. Truthfulness.

3. Transparency.

4. Compliance with current laws, this Decree and terms of credit rating contracts upon the performance of credit rating.

Article 6. Use of credit rating services

1. The use of credit rating services shall be based on demands of organizations and individuals.

2. Credit rating results are for reference but not investment or capital contribution recommendations regarding debt instruments and financial instruments issued by rated organizations.

Article 7. Prohibited acts

1. Modifying, erasing or forging documents in dossiers for which business eligibility certificates have been granted.

2. Modifying, erasing or forging business eligibility certificates.

3. Leasing or transferring business eligibility certificates.

4. Providing credit rating services without business eligibility certificates as prescribed by this Decree.

5. Demanding or receiving money or any benefits from rated organizations other than credit rating service charges agreed upon in signed credit rating contracts.

6. Using results of credit rating and issuance of debt instruments by rated organizations as a basis for determining credit rating service charges.

7. Colluding with or contacting rated organizations to falsify credit rating results.

8. Falsifying credit rating results.

9. Publicizing credit rating results without credit rating contracts with rated organizations.

10. Providing credit rating services in the cases of conflict of interest prescribed in Article 38 of this Decree, for analysts and members of credit rating councils.

11. The following acts of organizations subject to credit rating:

a/ Obstructing credit rating activities of analysts;

b/ Providing false or untruthful information and documents related to the credit rating;

c/ Intimidating, bribing or colluding with analysts and members of credit rating councils or agencies to falsify credit rating results.

Article 8. Master plans on development of credit rating services

Based on the development of the financial market, the Ministry of Finance shall assume the prime responsibility for, and coordinate with related ministries and sectors in, submitting a master plan on development of credit rating services in each period to the Prime Minister for consideration and approval.