Public consultation – Corporate Bond Scorecard 2.0

Dept 35 - Financial Markets II
Dept 35 - Financial Markets II

Published

  • Capital Market
  • Czech Republic

The Ministry of Finance of the Czech Republic publishes a proposal of the Corporate Bond Scorecard 2.0 for public consultation. It is already the second version of this document and its purpose is to provide investors, who are not experienced in such a kind of investment, a simple and fast tool for initial evaluation of bonds.

In the previous public consultation regarding the first version of the Corporate Bond Scorecard, the Ministry of Finance received many comments. Almost each of the respondents was invited to discuss the comments in the form of a personal meeting and the remaining respondents were notified electronically. The aforementioned personal and email discussions resulted in a certain consensus or opinion on each of the comments. Hence, the main outcome of the evaluation of the public consultation and the above-mentioned discussion is a new version of Scorecard – the so-called Corporate Bond Scorecard 2.0, which reflects a substantial part of the comments and outcomes resulting from the discussions. This time, together with the Scorecard 2.0, are published two additional documents – Orientation in the Czech financial statements and the Score Calculator of Corporate Bond Scorecard 2.0.
The aim of this public consultation is to get the opinion of the professional public on the new version of this proposal, the methodology proposed therein and again improve these documents. Please, send your comments to ales.kralik(at-sign)mfcr.cz and marek.subrt(at-sign)mfcr.cz by March 31, 2020. Thank you in advance for all suggestions.

Finally, we would like to point out again that even after discussions and amendments of the document, it still provides the investor with only initial assessment of the issuance and the issuer and is not intended to replace ratings from renowned companies. During more careful and complex evaluation of issuance more factors come into place. For the purposes of this document, several factors are simplified for better understanding.

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