As in many other countries, the work of Credit Rating Agencies has been regulated in the Kingdom of Saudi Arabia, since ratings are referenced in various ways in the financial system. It is therefore necessary to determine which Credit Rating Agencies give the relevant ratings. On November 10, 2014, the Capital Market Authority of Saudi Arabia issued the Credit Rating Agencies Regulations, coming into effect September 1st 2015. The Capital Market Authority of Saudi Arabia announced on September 16, 2015 that it received applications from six companies to be authorized to carry out credit rating activities in the Kingdom of Saudi Arabia.
Six companies applied at that time to be licensed to conduct credit rating activities in the Kingdom under the new regulations:
- Saudi Credit Bureau ((SIMAH),
- Standard & Poor’s Credit Market Services Europe Limited,
- Moody’s Investors Services Middle East Limited,
- Fitch Ratings,
- The Islamic International Rating Agency; and
- A.M. Best Europe- Rating Services Ltd.
The Credit Rating Agencies Regulations has been implemented to regulate and monitor the conduct of Credit Rating Agency activities in the Kingdom of Saudi Arabia, and to specify the procedures and conditions to be met prior to obtaining authorization to conduct such activities.
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Authorization of Credit Rating Agencies
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