Paper 10: Credit Rating Services

What this paper covers

This is a Practical Paper — what the SFC calls a Recognised Industry Qualification (RIQ). It tests industry knowledge, product structure and day-to-day practice.

Questions	40 multiple-choice
Time	60 minutes
Pass mark	70%
Delivery	Computer-based (CBE), in English or Traditional Chinese

Syllabus areas

• Role and business model of CRAs
• Major global credit rating agencies
• Industry development and regulatory evolution
• Quantitative analysis: financial ratios and credit metrics
• Qualitative analysis: governance, industry and operating risk
• Probability of default, recovery rate and expected loss
• Rating adjustments: guarantees, credit enhancement, sovereign ceiling
• Sovereign and sub-sovereign ratings

A summary of the main areas. Chapter structure and question weighting follow the latest HKSI Institute study material.

Who needs this paper?

Licensed representatives for these regulated activities must pass it:

• Type 10: Providing credit rating services (Recognised Industry Qualification)

Full RA mapping and exemption rules: the complete SFC LE guide.

How to study for it

Practical papers test process and scenario judgement, so memorising statute gets you only so far. Map each product or process onto a timeline — who does what, when, and owing what duty — then use practice questions to check you can locate the role and obligation quickly under time pressure.

At 40 questions in 60 minutes you have roughly 90 seconds per question — practise under timed conditions.