Approach and Ratings | HBDO Fundamental GUARD® Index
Approach – The Guard®Investor Protecting Index measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain.
The basic methodology is provided by Djankov, La Porta and others, The Law and Economics of Self-Dealing, Journal of Financial Economics, June 2008.
Ratings – HBDO’s short-term GUARD®Investor Protection Index indicate the potential level of default within a 12-month period. GUARD®Investor Protection Index is assigned on an alphabetic scale from ‘A’ (Prime Quality Grade) to ‘E’ (In default).
|
Categories |
WB (DB) Rates |
HBDO RATINGS |
| Prime Quality Grade | 10 -8 | A |
| High Quality Grade | 07-05 | B |
| Medium Grade | 04-03 | C |
| In default | 02-01 | D |
| 01-00 | E | |
Source:Powered by HBDO Indexes, propelled by the World Bank, 2014.
Ex: HBDO affirms #Norway at ‘B’ – High Quality Grade | GUARD®Investor Protection Index
ie: Norway rated at ‘B’. It means Norway get a high quality grade on the strength of investor protection : a high quality grade on the strength of minority shareholder protections against directors’ misuse of corporate assets for personal gain.