BUDAPEST, HUNGARY, June 28, 1999 – The
International Finance Corporation signed an agreement today to invest in
a Hungarian company which will offer a full range of credit rating services
that will encourage future investments in Hungary.
IFC will make a 20 percent equity investment of up to US$100,000 in DCR
Hungarian Credit Rating Co. (DCRH), which will use internationally accepted
standards to provide all types of credit rating services for the Hungarian
The technical partner of the credit rating agency will be Chicago-based
Duff & Phelps Credit Rating Co. (DCR), which has offices in 26 countries
around the world.
Other partners in establishing DCRH are HVG Kiadoi Rt., an independently
owned publisher of the leading Hungarian economic news magazine, Heti Vilaggazdasag;
and PlanEcon, a consulting company specializing in economic and industrial
analysis in Central-Eastern Europe and the former Soviet Union.
At the signing ceremony, Mr. Harold Rosen, Director of IFC's Central and
Southern Europe Department, said that improving credit rating services
in Hungary would provide investors with an objective risk evaluation of
debt securities and lead to greater transparency and investor protection.
He added that the comfort afforded by the credit rating agencies in Hungary
should make savers more willing to invest in corporate debt instruments,
as well as offering more credit-worthy borrowers a relatively lower cost,
and developing a healthy corporate debt market.
DCRH will be part of a regional network including IFC's recent investments,
alongside DCR, in similar companies in Czech Republic and Turkey.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in
the developing world, mobilizes capital in the international financial
markets, and provides technical assistance and advice to governments and