2014-06-20 13:22:36

Institute for Analysis and Rating

 Warsaw, 20 June 2014

Institute for Analysis and Rating Will Change Poland's Bond Market

PRESS RELEASE

  • Establishment of the Institute for Analysis and Rating (IA&R) is to bridge the gap in the rating offer on the local market in the segment of small and medium-sized enterprises
  • IA&R will improve the credibility and transparency of Poland's non-Treasury debt market
  • WSE will introduce a system of incentives for issuers to get ratings as well as a new debt market model

Warsaw Stock Exchange has established today the Institute for Analysis and Rating (IA&R). The mission of the Institute is to improve the safety of the national non-Treasury debt market especially in the segment of small and medium-sized enterprises. The establishment of the Institute is a continuation of WSE's initiatives aimed at enhancement of the quality of the Polish capital market and reinforcement of its role in financing national development. The creation of an independent institution to improve the credibility of the Polish capital market, in particular monitoring of risk on the bond market, was one of the main recommendations of the European Financial Congress in 2013.

"The role of the capital market is to support economic development, especially innovative economy. The capital market in Poland already plays an important role in this regard but it is still insufficient. Hence, WSE takes and will continue to take further initiatives to increase its importance in national development. The creation of the Institute and the recently announced establishment of the Warsaw Startup Space are concrete examples of our recent initiatives which change the economic reality we work in. Despite dynamic development in the last years, the Polish market of non-Treasury bonds still has a huge, multifold growth potential. The growth of the market requires a better risk management system as well as protection of investors' interest, i.e., broadly used and easily accessible ratings. This is the role of the Institute for Analysis and Rating," said Adam Maciejewski, President of WSE.

"The Institute for Analysis and Rating will offer a broad range of rating products addressed to different market segments. The mission of IA&R is to cover the biggest possible number of issuers and issues of non-Treasury debt with ratings, particularly the segment of non-financial small and medium-sized enterprises. Rating fees will be highly competitive and tailored to the specificity of the local bond market, calculated to ensure that smaller issuers can also afford ratings. The offer of IA&R will be gradually expanded to include debt market information and analytical products offered to investors. IA&R should become fully operational within a year from inception. The institution is expected to break even within three or four years," added Maja Goettig, President of IA&R.

The activity of IA&R will help to improve the transparency of the non-Treasury debt market, to make it more credible to investors, and to ensure more rational allocation of capital by linking bond prices more closely to the issuer's credit risk. The formation of a national rating agency will bridge the gap in the rating offer, particularly in the segment of small and medium-sized enterprises. The activity of IA&R will thus contribute to better effectiveness and growing liquidity of the Polish bond market. The newly established agency will in the first place focus on the local market and in the longer term also on the Central European market.

"A national rating agency is an idea in support of the development of the debt market, especially debt instruments issued by mid-sized private companies. The market needs safety and liquidity; professional ratings may enhance the credibility of issuers to investors," said Andrzej Jakubiak, Chairperson of the Polish Financial Supervision Authority.

"I count on further development of the market of exchange-traded corporate and municipal bonds. I am positive that IA&R will help to improve its credibility and liquidity," said Wiesław Rozłucki, Chairman of the Exchange Supervisory Board.

"IA&R is an important step towards improved credibility of the Polish capital market for investors. Superior credibility means lower cost of raising capital for issuers and is decisive to the competitive position of Poland in the longer term," saidProfessor Leszek Pawłowicz, Member of the Exchange Supervisory Board.

"The Institute for Analysis and Rating fills an important gap in Poland's capital market infrastructure. The creation of a credible institution which addresses its offer to most issuers will contribute to objective market valuation of credit risk, improve the liquidity and safety of investments, resulting in reduced costs of raising capital for issuers, thus supporting the growth of the national economy," said Jacek Fotek, President of BondSpot S.A.

The Institute for Analysis and Rating has been founded by Warsaw Stock Exchange. In view of the scale and importance of the institution in the national financial system, other financial institutions may also invest in its equity.

The first Management Board of IA&R includes: Maja Goettig and Błażej Lepczyński.

The Supervisory Board of IA&R includes: Michał Chyczewski (Chairman), Wiesław Rozłucki (Deputy Chairman), Jacek Fotek (Member), Professor Andrzej Wojtyna (independent Member) and Professor Dariusz Filar (independent Member).

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Maja Goettig, President
In 2012-2014, Chief Economist and Central and Eastern Europe Strategist at KBC Securities. In 2008-2012, Chief Economist in Bank BPH, from 2010 also Director of the Economic Research Bureau at Bank BPH. Since 2011, Member of the Economic Council to the Prime Minister of Poland. In 2011-2013 an expert of the Polish Confederation of Private Employers "Lewiatan". Master's degree in International Economics at the University of Sussex, United Kingdom.

Dr Błażej Lepczyński, Vice-President for Rating Procedure Review
MA from the University of Gdańsk. Long-time employee of the Gdańsk Institute for Market Economics, most recently as Director of the Research Area "Banking and Financial Markets". Assistant Professor at the Department of Banking, University of Gdańsk. Long-time affiliate of the Gdańsk Academy of Banking. Main research areas include: evaluating the financial standing of banks, managing risks and capital adequacy of banks, financing banking operations, development of retail and mortgage banking. His professional engagements have included the function of project leader in many research projects on banking and the financial markets. He has extensive experience in developing projections of financial market development. Author and co-author of many research publications and essays. Former Member of the Supervisory Board of Bank BPH and Deputy Chairman and later Member of the Supervisory Board of PKO BP SA.

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Warsaw Stock Exchange is the biggest securities exchange in Central and Eastern Europe. WSE organises trading on one of the most dynamically growing capital markets in Europe. WSE operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. WSE is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, WSE is a public company listed on Warsaw Stock Exchange. www.gpw.pl.

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