January 20, 2005
Internal Control Weaknesses Can Affect Company Financial Ratings
Fitch Ratings to take negative Section 404 rankings into account in their overall rating of public companies. Just another reason to make sure this work is done well and thoroughly.
An excerpt on this topic is here:
"Negative rating actions, if any, will be case-specific and may be in the form of a Rating Outlook revision, a Rating Watch Negative placement, or a downgrade, depending on the situation. Fitch's action will depend on whether the weaknesses in the company resulting in the statement have already been identified by Fitch, whether or not such weaknesses are already reflected in the ratings, and management's plans to remedy the situation.
Evaluating the reliability of financial data and assessing the internal controls over such data has always been an implicit part of Fitch's rating process. For example, serial restatements call into question financial reporting integrity. That said, Fitch places substantial reliance on a company's internal control framework and external auditors and regulators in determining that financial statements and disclosures accurately reflect a company's financial condition. " Click here for the complete article.
To learn how your company can do a thorough, effective and affordable Sarbanes-Oxley Section 404 project, click here www.issuescentral.com and learn more about Sarbanes-Oxley Compliance Playbook(tm).
An excerpt on this topic is here:
"Negative rating actions, if any, will be case-specific and may be in the form of a Rating Outlook revision, a Rating Watch Negative placement, or a downgrade, depending on the situation. Fitch's action will depend on whether the weaknesses in the company resulting in the statement have already been identified by Fitch, whether or not such weaknesses are already reflected in the ratings, and management's plans to remedy the situation.
Evaluating the reliability of financial data and assessing the internal controls over such data has always been an implicit part of Fitch's rating process. For example, serial restatements call into question financial reporting integrity. That said, Fitch places substantial reliance on a company's internal control framework and external auditors and regulators in determining that financial statements and disclosures accurately reflect a company's financial condition. " Click here for the complete article.
To learn how your company can do a thorough, effective and affordable Sarbanes-Oxley Section 404 project, click here www.issuescentral.com and learn more about Sarbanes-Oxley Compliance Playbook(tm).
