Whether a credit rating company holds debt instruments of a credit-rated organization is considered a conflict of interest, according to the provisions of Point a, Clause 1, Article 38.Decree 88/2014/ND-CP There are regulations on conflict of interest cases as follows:

Cases of conflict of interest

1. Credit rating businesses:

a) Buy and hold stocks, capital contributions, and debt instruments of credit-rated organizations during the implementation of credit rating contracts;

b) Providing credit rating services to related persons of the credit rating enterprise;

c) Have an investment capital relationship with a credit-rated organization;

d) There is a related person who owns more than 5% of the actual contributed charter capital of a credit-rated organization or more than 5% of the total outstanding debt of a credit-rated debt instrument.

2. Business managers, analysts, members of the Credit Rating Council:

a) Buy and hold stocks, capital contributions, and debt instruments of credit-rated organizations during the implementation of credit rating contracts;

b) Owning more than 5% of the actual contributed charter capital of an organization providing issuance consulting services, risk management, underwriting, and distribution agents for credit-rated organizations;

c) Participate in negotiating service costs of credit rating contracts;

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Thus, according to the above regulations, a credit rating company that holds debt instruments of a credit-rated organization in the process of implementing a credit rating contract is in a case of conflict of interest.