SECURITIES COMMISSION OBLIGES AUTHORIZED RATING AGENCIES TO CREATE RATING COMMITTEE

Business news from the Ukrainian League of Industrialists and Entrepreneurs

SECURITIES COMMISSION OBLIGES AUTHORIZED RATING AGENCIES TO CREATE RATING COMMITTEE

16 Aug , 2017  

KYIV. Aug 16 (Interfax-Ukraine) – The National Commission for Securities and the Stock Market of Ukraine has obliged authorized rating agencies to create a new body – the rating committee – as part of an organized structure.
The requirement is outlined in the amendments to the rules of assigning national ratings by authorized rating agencies approved at the commission meeting on August 10, 2017.
According to the document, the authorized rating agency is obliged to identify and eliminate any existing or potential conflicts of interest that may affect the work and conclusions of rating analysts, employees and other persons whose services the agency uses, or who are involved in the process of rating assignment/approval.
Changes in the rules also prescribe that quarterly reports of the issuers of securities should be included in the information that the rated entities should report to an authorized rating agency.
During the meeting, the securities commission also approved the rules of holding tenders to determine the authorized rating agencies and the rules of keeping the public register of authorized rating agencies.
The rules have the requirements for an information message (announcement) on a tender to select authorized rating agencies, a tender commission, the procedure and conditions for participation in the tender, the procedure for conducting it, the procedure for resolving disputes and other issues.
The rules of keeping the public register of authorized rating agencies specifies the requirements for this register, in particular: the composition of information, the procedure for introducing changes, the procedure for removing an authorized rating agency from the register, issuing a duplicate certificate, and the procedure for obtaining information on authorized rating agencies.
These documents are drawn up, taking into account the requirements of EU Regulation No. 1060/2009 of the European Parliament and of the Council of Europe dated September 16, 2009 on credit rating agencies. In addition, in order to adapt national legislation, the commission is designing a bill on the rating system.
According to the data of the National Commission for Securities and the Stock Market, currently the authorized rating agencies are: ІВІ-Rating, Rurik, Expert Rating, Credit Rating and Standard-Rating.