Capital Intelligence Ratings is targeting the covered bond space, particularly frontier markets, announcing today (Wednesday) that it expects to release a proposed covered bond rating methodology in the first half of the year and joining the European Covered Bond Council.

It said the move is part of an international expansion strategy and also aimed at strengthening its position in areas in which it is already established, such as the Middle East, North Africa, Eastern Europe and Asia.

“We have joined the ECBC to share our long-lasting experience in emerging markets,” said Zafer Diab, managing director of CI Ratings (pictured). “Together with our clients, we will work intensively to further promote covered bonds as a very efficient funding tool for banks and a higher quality investment class for investors.

“As part of our international expansion strategy, we are also strongly committed to playing an active role in promoting the concept of covered bonds and establishing CI as the rating agency of choice for both issuers and investors in new frontier markets.”

The rating agency said it is at an advanced stage in the development of its covered bond rating methodology and expects to publish it for consultation in the first half of 2017.

CI Ratings is regulated as a Credit Rating Agency (CRA) by the European Securities & Markets Authority (ESMA) and accredited as an External Credit Assessment Institutions (ECAI) throughout the EU. It was established in 1982 and its analysts cover over 300 issuers in 39 countries.

Several rating agencies have been pushing into the covered bond market in recent years. DBRS re-entered the market in 2011 to join its three big established peers – Moody’s, Standard & Poor’s and Fitch – while Scope began rating covered bonds in 2015 and the likes of Creditreform and Kroll have also expressed a desire to enter the market.

Photo credit: CI Ratings