Compensation

modefinance Corporate Credit Ratings are issued on a solicited or an unsolicited basis. With reference to solicited ratings, the compensation consists of a fee directly paid by the rated entity for the purposes of the judgment (issuer pays model). In the case of unsolicited ratings, modefinance revenues arise exclusively from the subscriptions by third party users.

According to the Credit Rating Agency Regulation, modefinance ensures that the fees charged to its clients for the credit rating issuance and the ancillary services are not discriminatory and are based on actual costs. Fees charged for credit rating services shall not depend on the level of the credit rating score issued by the credit rating agency or any other outcome of the work carried out.

The current modefinance policies and procedures on conflicts of interest stipulate that no buyers of services of modefinance for more than 3% of total modefinance turnover in the previous 12 months shall be rated by modefinance. If this threshold is exceeded after one or more ratings are issued, these ratings would be withdrawn.