Thomson recognition void

PUBLISHED : Tuesday, 11 December, 2001, 12:00am
UPDATED : Tuesday, 11 December, 2001, 12:00am

The Hong Kong Monetary Authority has revoked the recognition of Thomson BankWatch as a recognised agency to rate bonds qualified to benefit from the profits tax concession scheme. The revocation followed the takeover of Thomson BankWatch by Fitch, which has received a recognised agency rating. All former Thomson BankWatch ratings have been superseded by Fitch ratings. Present tax laws allow traders to enjoy lower profit tax earned from the trading of certain bonds which carry ratings offered by a HKMA-recognised agency. The recognised agencies and the minimum ratings required for qualification are: Fitch, BBB minus; R&I, BBB plus; Moody's Investor Services, Baa3; and Standard & Poor's, BBB minus.