The Bank of Russia will now require credit rating agencies (CRAs) to disclose credit ratings along with the assessment of stand-alone creditworthiness of rated entities. The central bank has published a draft ordinance aimed at ensuring its regulatory impact assessment.
CRAs must describe the quantitative and qualitative factors determining an entity’s ability to meet its financial obligations and explain how these factors impact its credit rating and outlook.
The document aims to ensure uniformity in CRA practices regarding the disclosure of information on assigning, extending, and revoking the 'under supervision' status of credit ratings. Such a status indicates that a rating is very likely to change in the near future.
These new requirements are intended to make more comprehensive justifications of credit ratings available to a wider audience and enhance the transparency of rating activities.
The Bank of Russia is open to suggestions regarding the draft until June 14, 2024.
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