The Bank of Russia has set forth criteria for recognizing foreign credit rating agencies (CRAs) to allow their ratings to be used in the country’s regulations and other documents. This initiative aims to facilitate a more seamless flow of capital and services within the international financial market.
To gain approval from the Bank of Russia, a foreign CRA must have at least five years of market experience and possess capital amounting to no less than ₽50 million. The agency’s methodology should include both quantitative and qualitative assessments of creditworthiness, allowing for verification based on historical data. Additionally, it must adhere to corporate governance principles, comply with disclosure terms, and effectively prevent conflicts of interest. In total, 19 criteria have been established by the regulator.
According to the Bank of Russia, “the recognition of foreign ratings will expand the opportunities for a free flow of capital and services in the international financial market.” However, these ratings can only be applied concerning foreign-rated entities according to the international scale.
The guidelines aim to ensure that recognized CRAs maintain high standards while providing valuable insights into creditworthiness on an international level.
