Bank of Russia to use banks’ credit ratings in liquidity-providing operations
Beginning on 1 April 2022, instead of information on classification groups, the Bank of Russia will rely on the credit ratings of the Bank of Russia’s counterparties in the course of liquidity-providing operations in the domestic market. From the above date, the Bank of Russia will carry out repos with credit institutions and issue secured loans to them only if they have at least one credit rating assigned by the rating agencies Analytical Credit Rating Agency (JSC) or JSC Expert RA.
The use of credit ratings for issued secured loans is required by Bank of Russia Ordinance No.
The lowest credit rating of those assigned to a credit institution shall be at a level not below:
— B-(RU) / ruB- assigned by the rating agencies Analytical Credit Rating Agency (JSC) / JSC Expert RA for repos and securities-backed lending;
— BB-(RU) / ruBB- assigned by the rating agencies Analytical Credit Rating Agency (JSC) / JSC Expert RA for lending backed by credit claims.
Earlier, the Bank of Russia planned to switch to the use of credit ratings beginning from 1 January 2022. The transition to the use of credit ratings was rescheduled for 1 April 2022, which will give credit institutions more time to get prepared to this change.
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