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U.S. Local Government General Obligations

In this document HR Ratings details our methodology for the evaluation of US local government general obligation bonds.



Evaluation of the Integrity Policy

This Methodology provides the guidelines by which HR Ratings assesses compliance with the Integrity Policy of an entity or organization



Partial Guarantess for Structured and Unsecured Debt

Methodology to incorporate Partial Guarantees into the credit analysis process for different types of assets.



General Methodological Criteria

The present Methodology establishes the General Methodological Criteria of HR Ratings. Our credit ratings need to be understood as rankings of the relative creditworthiness of different entities or credits. Creditworthiness takes into consideration both the ability and willingness to meet debt obligations in the manner prescribed in the relevant documentation. Default refers to the non-compliance of previously agreed obligations. Later, this document presents the type of defaults that we recognize and the evaluation that is made over the impact that the default will have in certain obligations over the entitys rating.



Green Bonds Evaluation Criteria

In past years the market for Green Bonds has seen an important growth in the world, and some countries are starting to see their first green debt issuances in their local markets. Therefore, given the important position that HR Ratings has in the local market, has decided to propose this Green Bonds Evaluation Criteria (GBEC).



Social Bonds Evaluation Criteria

This document describes HR Ratings Social Bonds Evaluation Criteria (SBEC), which represent the process by which a Social Level is assigned to different financial instruments, which can be grouped under the Social Bonds concept. It is important to note that this document does not provide a process whereby the result is a credit rating, rather it represents an assessment of the social impact a specific project or asset may have over time. This document establishes a scale to classify different projects related to Social Bonds. Therefore, the main objective of the SBEC, and the resulting level, is to provide market participants, interested in investing in this type of asset, with information to classify different Social Bonds according to the social impact expected from projects financed with thecaptured resources, and the capacity of the issuer to comply with international standards of transparency and reporting.



Sustainable Bond Evaluation Criteria

The Sustainable Bonds Evaluation Criteria (XBEC) determines whether a bond, or any financial instrument, can be considered sustainable and offers a scale to compare the expected benefits of sustainable projects. To assign this Sustainable Level, HR Ratings determines whether the bond has the characteristics of a Green Bond (BV) and a Social Bond (BS). The XBEC assess how a bond or financial instrument may have a social and environmental impact, considering that although certain projects may have a specific focus, they may generate multiple positive collateral effects. This document establishes a scale to classify different projects associated with Sustainable Bonds. As a result, the XBEC and the level assigned provide market participants looking to invest in these types of assets with necessary information to be able to classify and compare different Sustainable Bonds, according to their expected social and environmental impacts.



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