A rated company requested to add a joint-venture subsidiary to their company tree. Today, Bitsight requires that subsidiaries are 100% wholly-owned or more than 50% owned if the company is compliant with the Accepted Accounting Standards.
The Policy Review Board decided to recommend a change in policy to allow joint-venture companies to be included under certain conditions. We will consider a company to be a subsidiary of a parent for rating purposes if 1) the subsidiary is wholly owned by the parent company, OR 2) the parent has above 50% ownership and is IFRS-10 compliant, OR 3) both the parent and the subsidiary agree in writing to the relationship.