Bank of Russia to set additional requirements for disclosure of credit ratings
From now on, credit rating agencies (CRAs) will be required to disclose credit ratings together with the assessment of stand-alone creditworthiness of rated entities. The Bank of Russia has published draft ordinance to ensure its regulatory impact assessment.
CRAs will have to describe the quantitative and qualitative factors determining an entity’s ability to meet its financial obligations and also explain how these factors impact its credit rating and outlook.
The document ensures uniformity in CRA practices of disclosing information on assigning and extending credit ratings, and revoking their ‘under supervision’ status. Such a status shows that a rating is very likely to change in the near future.
The new requirements are aimed at making more comprehensive justifications of credit ratings available to a wider audience and ensuring the transparency of rating activities.
The Bank of Russia welcomes any suggestions regarding the draft until 14 June 2024.