RULES ABOUT CONTINUING VALIDITY OF RATING REPORTS IN CASE OF CANCELLATION OF RATING CONTRACTS

Rating reports are often written with a one-year Outlook in mind and reviewed periodically. If the financial or corporate circumstances of the companies change enough between trimesters to affect the ratings, the ratings are matched with the risk categories that correspond to the new scenario.
If a rating agreement is canceled within the one-year period during which a given rating report is valid, the question of whether the rating reports associated with that agreement will be valid until the date of a predetermined yearly maturity is governed by the following rules:

a.     If there is a time difference of three months between the date of cancellation of rating agreements and the date on which rating reports are valid:
Because rating reports are evaluated at least trimesters, the report's validity can be guaranteed until the end of the trimesters following the contract's termination date. The Rating Committee, on the other hand, will decide whether the rating reports will stay valid until maturity by examining the positions of the relevant firm and the reasons for contract cancellation on the basis of each transaction.
b.     If there is a time difference of more than three months between the date of cancellation of rating agreements and the end date of the rating report:

General Rule

Because rating reports are evaluated at least quarterly, if the rating report's validity date surpasses the three-month period following the contract's cancellation, the report's validity cannot be maintained until the maturity date. Due to the cancellation of the rating agreement, regarding the periods exceeding three months between the validity date of the reports and the cancellation date of the agreement,

-    Since the obligation of the companies to provide all kinds of information and documents and
-    the right of the Rating Agencies to following the developments
have been lost simultaneously, the validity of the rating reports for the remaining period will not be technically ensured, since the authority of the rating agencies to express their opinions regarding the future financial health of the companies has naturally disappeared.

Exception

Besides, the validity of the rating reports can be ensured until the maturity date, if a commitment is given to ensure that the companies' obligation to provide all kinds of information and documents within the aforementioned period is given, provided that the content of the canceled contract is fully complied with. This means that the canceled contract is continued until the report date and this process is also charged. However, this decision shall be made by the Rating Committee as well.  Furthermore, grade changes will be made during this time in cases where a grade change is required, and when the grades are reviewed, updated, and published in the last quarter, the grades and reports will be withdrawn simultaneously, and the process will be completely terminated, as the contract will be canceled.

Property Right of Rating Reports

Literature wise due to the rating operation specificities and not being like a commercial classic good or service to be obtained from the markets or an asset whether movable or immovable by paying its value, with the public regulations rating report’s royalties and their right of possession does not belong to the issuer (companies obtaining the rating) but given to existing or potential investors in other words to the public opinion (not public). Only the companies that receive the rating have the right to benefit from the rating's outcomes. This right to benefit can last for a maximum of three months after the contracts have ended, after which the report will be withdrawn. The reason for this is included in the above mentioned details. As a result, the fact that the fee has been paid cannot be used as a precautionary basis for the report's removal on behalf of existing/potential investors, because ownership does not transfer.