The General Nature of CI’s Compensation Arrangements

Capital Intelligence’s core business activity is the assignment and monitoring of credit ratings and the provision of related information and data analysis, including credit rating reports.

Many of the entities rated by Capital Intelligence pay the Company for assigning credit ratings and for conducting surveillance on their creditworthiness. The rating fees charged by Capital Intelligence typically vary in accordance with the size and complexity of the entity and the type of rating being assigned.

Capital Intelligence is committed to ensuring that the payment of fees by issuers does not conflict with the objectivity and integrity of its credit ratings and rating actions and has adopted internal policies and procedures to eliminate or manage any conflicts of interest that could arise from such an arrangement (see Conflicts of Interest and Risk Mitigation).

Capital Intelligence also derives a proportion of its revenue from the sale of credit rating reports to subscribers, most of whom are financial institutions. A small part of the Company’s revenue comes from educational seminars on credit analysis.