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Australian Ratings announces sale of investment ratings division to Foresight Analytics

Australia Ratings Pty Ltd (Australia Ratings) has announced the sale of its investment ratings division, Australia Ratings Analytics Pty Ltd (ARA) to Sydney-based Foresight Analytics Pty Ltd (Foresight).

ARA was a division of Australia Ratings that assigned investment ratings to managed funds, separately managed accounts (SMAs) and insurance bonds. The investment ratings staff of ARA have transitioned to Foresight and the investment rating service will continue to operate in a similar manner albeit under its new brand of Foresight Analytics. Foresight Analytics Pty Ltd is managed by Jay Kumar, a former executive of Morningstar Australia.

Australia Ratings will continue to offer credit rating and risk services to the Australian market. Australia Ratings provides credit ratings and assessments on corporate, financial and government entities as well as debt and listed hybrid securities. It will also continue to operate other ancillary services such as assessment of resource companies and credit risk training services.

Australia Ratings’ Managing Director, Chris Dalton, said “We commenced the ARA business to provide investment ratings of funds, SMAs, and investment bonds to financial planners and wealth advisory groups. Having established a successful presence in the research market, we believe the transfer of the business to Foresight will allow it to accelerate its growth trajectory”.

The focus of Australia Ratings will be on credit ratings and related services, which are valued by investors and other market participants to help them understand the features and quality of a range of debt products. “Investors will also continue to benefit from Australia Ratings’ unique product complexity indicator, which gives investors a clear and simple guide to the complexity of the security, complementing our credit ratings”, Mr. Dalton added.

Australia Ratings is one of six credit rating agencies that holds an Australian Financial Services Licence (AFSL). It is the only Australian-owned credit rating agency that holds a retail AFSL. As such, Australia Ratings is the only ratings agency in Australia licensed to assign credit ratings to debt securities and products offered to retail investors in Australia.

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