ASX hires Australia Ratings to rate debt securities

Australia Ratings is to provide credit ratings and "product complexity indicators" to debt and hybrid securities listed on the Australian Securities Exchange.

In an announcement yesterday, the ASX said it appointed Australia Ratings under the ASX's Debt and Hybrid Research Scheme.

Australia Ratings, as the only credit rating agency in Australia holding a retail Australian Financial Services Licence issued by the Australian Securities and Investments Commission, was the only real candidate for the work.

Chris Dalton, managing director of Australia Ratings, said in a media release that the ratings agency was the only one in Australia "licensed to assign credit ratings to debt securities and products offered to retail investors in Australia."

ASX's head of debt capital markets, Ken Chapman, said: "the Debt and Hybrid Research Scheme aligns with ASX's objective to develop a more active retail corporate bond market and follows the passage of the Simple Corporate Bonds Bill through Parliament in September, 2014."