Credit rating has been described as the panacea for promoting accelerated funding for economic development and ushering in a brighter future of the capital market.
Managing Director of a credit rating agency, DataPro, Abimbola Adeseyoju, at a press briefing, gave the value proposition of credit rating and its benefits to investors, regulators and the economy, among others.
He said even as the credit rating agency evaluates the creditworthiness of obligors, the rating report serves various purposes and caters to a varied audience/clientele.
Adeseyoju, who spoke ahead of its maiden live webinar on ‘Post-COVID Economic Recovery: Credit Rating Imperative for Issuers and Investors’, slated for tomorrow, said the credit rating industry is no exception as various sectors of the economy are currently experiencing disruptions.
He said the programme, which would be held in conjunction with the Association of Issuing Houses of Nigeria (AIHN), would bring to the fore the important role Credit Rating Agencies (CRA) play in economic recovery efforts post-COVID.
He said the programme would enlighten stakeholders in the capital market about new and emerging trends, patterns, risks and opportunities within the CRA.
According to him, to espouse the potential of CRA in developing the capacity of Micro, Small and Medium-scale Enterprises (MSMEs) in fulfilling their role in economic development.
He said the webinar is expected to develop the market for solicited and unsolicited ratings as well as showcase the firm’s fintech rating solutions, rating report and rating guide platform.
He said the webinar is targeted at capital market stakeholders, including investors, mutual funds, pension funds administrators, and all banks, credit guarantee agencies, insurance companies, private equity firms, regulators, MSMEs, and the general public.
Following heavy economic disruptions occasioned by the pandemic, he said the government intervened with a lot of palliatives and intervention to prevent the economy from total collapse.
On the need for companies to learn how to live after COVID-19, he said: “So, we need to understand what the credit rating agency can do to ensure that the funding and the capital that is needed for the manufacturing companies are available out there because the government is not going to continue that interventionist approach.”
“The country needs to move forward in the MSMEs in terms of understanding how agencies can also help them access capital.”
