DataPro Trains Journalists On Credit Rating Reporting

Nigeria’s Technology-Driven Rating Agency, DataPro Limited has trained over 30 journalists on credit rating knowledge gap.
The Organisation organised the second edition of its Annual Media Training program tagged ‘Credit Rating and Investigative Journalism’ centred on promoting the value proposition of the Credit Rating Industry and advancing the course of investigative journalism in Nigeria.

Participants were exposed to the workings of the Credit Rating Agency and to the role the media could play in rating change decisions in order to foster and encourage a mutually beneficial partnership between both parties.

The chief operating officer of DataPro, Prince Oladele Adeoye stated that the annual training program was instituted by DataPro, in line with the Securities and Exchange Commission (SEC) directive for Capital Market Operators (CMOs) to enlighten the general public on their operations, promote Stakeholders participations and close the knowledge gap.

He noted that it is also a way of equipping the Media Agencies on how to report credit rating news as information in the public domain speaks to the heart of credit rating decisions and investor’s reactions, saying the training is also part of DataPro’s Corporate Social Responsibility (CSR).

Laying out the value propositions of Credit Rating Agencies, Adeoye, who is also the chief rating officer of DataPro said, “Credit Rating Agencies (CRAs) evaluate and rate the creditworthiness of debt securities and their issuers, including companies and countries.

“They assign credit risk ratings to such entities based on quantitative and qualitative analyses. The ratings show the likelihood of a borrower to default or repay a loan with interest.”

He further said Credit Rating Agencies, with their unique role and expertise, are foundational to the stability of the financial markets, adding that “their purpose extends beyond just determining the creditworthiness of an entity, they also provide valuable insights into market trends and potential investment risks.

“Credit Rating Agencies exert considerable influence over macroeconomic conditions, impacting financial markets’ efficiency, stability, and integrity.”

Adeoye emphasised on the need to accelerate the Credit Culture in Nigeria as a way of promoting economic growth. He said that the Nigerian economy will grow faster if more MSMEs have better access to credit and more importantly know what to do to prepare themselves for accessing the Capital Market.

He noted that “the Capital Market is not about equities, shares and the stockbrokers alone. There is also the Debt Subsector that provides a very veritable, viable and alternative funding channel for entrepreneurs and business owners.”

According to him, poverty and unemployment in Nigeria can be greatly reduced if we become a producing country instead of one that is import-dependent.

Adeoye explained that the Rating Process is not an Audit exercise but the analysis of the financial, business, management, regulatory and sustainability of an entity in order to determine its credit worthiness.