6.The ECAI should be free from any economic or external political pressures that may influence its credit ratings. In particular, an ECAI should not delay or refrain from taking a rating action based on its potential effect (economic, political or otherwise). The independence of an ECAI shall be assessed on the basis of the following five parameters:

1. (i)Ownership: The ownership structure should not be such that it could jeopardize the objectivity of the rating process. For example, the owners should not hold 10 percent or more of the equity of any entity rated by the ECAI.
2. (ii)Organizational Structure and Corporate Governance: The ECAI should demonstrate that its organizational structure minimizes the scope for external influences to influence the rating process inappropriately. The ECAI should have in place effective corporate governance that safeguards the independence of its credit ratings, promotes integrity, and ensures that internal disagreements over ratings are resolved in ways that do not compromise the overall effectiveness of the rating process.
3. (iii)Financial Resources: The ECAI must demonstrate that its business is financially viable and is able to sustain any commercial pressure that might be exerted by external entities, including the entities being rated. The ECAI’s financial position should not depend significantly on the provision of other services to the rated entities.
4. (iv)External Conflict of Interest: The credit rating process of the ECAI should have the ability to withstand external pressures. The ECAI should demonstrate that it is free from any type of external conflicts of interest, or that conflicts of interest are disclosed and managed.
5. (v)Separation: An ECAI should separate its rating business operationally, legally, and if practicable, physically from its other business operations that may present a conflict of interest, such as advisory services.