An agency is a business or organization providing a particular service on behalf of another business, person, or group. Any business providing ratings can be called a rating agency. A credit rating agency in particular, also called a ratings service, is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default. A registered agency may rate the creditworthiness of issuers of debt obligations, of debt instruments, and in some cases, of the servicers of the underlying debt.
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,
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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2021 Securitization Awards. Kroll Bond Rating Agency (KBRA), a global full-service rating agency, was named “Securitization Rating Agency of the Year” by GlobalCapital at its U.S. Securitization Awards 2021. “KBRA was founded in 2010 to set a standard of excellence and integrity, and we have been loyal to this notion since then,” Eric Thompson, Global…
URA Research GmbH is once again coming up with new insights into bonds. After reviewing and analyzing the financial reports published in 2021, the URA ratings for 13 bonds were confirmed. For 2 bonds (FC Schalke 04 III and Katjes III) the assessment has deteriorated. The 4th bond from Schalke 04 and the 1st bond…
Auditors have been making double-digit million losses for years. At Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (EY) in Germany, “equity” is on the assets side, namely as a “deficit not covered by equity” in the amount of € 62,715,000. The provisions, liabilities, deferred income as well as deferred taxes and fiduciary obligations exceed the company’s assets…
The German supervision missed the chance to intervene. “It cannot be right for a rating agency to give a bank a rating and at the same time advise on the analysis,” the Frankfurter Allgemeine Zeitung quotes Frank Schäffler (FDP), a member of the German Bundestag. “That stinks to heaven,” is how the financial expert sums…
The Office of Credit Ratings (OCR) assists the U.S. Securities and Exchange Commission (US SEC) in executing its responsibility for protecting investors, promoting capital formation, and maintaining fair, orderly, and efficient markets through the oversight of Credit Rating Agencies registered with the Commission as Nationally Recognized Statistical Rating Organizations (NRSROs). In support of this mission, the Office of Credit Ratings monitors the activities and conducts examinations of registered Nationally Recognized Statistical Rating Organizations to assess and promote compliance with statutory and Commission requirements.
The Office of Credit Ratings is charged with administering the rules of the US SEC with respect to the practices of Nationally Recognized Statistical Rating Organizations in determining credit ratings for the protection of users of credit ratings and in the public interest; promoting accuracy in credit ratings issued by Nationally Recognized Statistical Rating Organizations; and working to ensure that credit ratings are not unduly influenced by conflicts of interest and that Nationally Recognized Statistical Rating Organizations provide greater transparency and disclosure to investors.
In the period leading up to the financial crisis in 2008, 2010 and so on, the European Commission considered to strengthen the regulatory and supervisory framework for Credit Rating Agencies (CRAs) in the European Union (EU), to restore market confidence and increase investor protection:
(1) The first set of rules, which entered into force at the end of 2009, established a regulatory framework for Credit Rating Agencies and introduced a regulatory oversight regime, whereby Credit Rating Agencies had to be registered and were supervised by national competent authorities. In addition, Credit Rating Agencies were required to avoid conflicts of interest, and to have sound rating methodologies and transparent rating activities.
(2) In 2011, these rules were amended to take into account the creation of the European Securities and Markets Authority (ESMA), which supervised Credit Rating Agencies registered in the European Union.
(3) A further amendment was made in 2013 to reinforce the rules and address weaknesses related to sovereign debt credit ratings.
The competent authorities publish lists of the Credit Rating Agencies that they have recognized or certified. For various reasons, these are not always visible, such as on Monday, July 27, 2020 @ 09:00 – the relevant page of the website of the European Securities and Markets Authority was not accessible to everybody. No matter, which device and which browser you are using, you would not get their information online. We therefore have lists of the data available to us here. In contrast to the official lists, our ones include links to Credit Rating Agencies’ websites. This makes it easy to get an overview of all recognized agencies and to contact Credit Rating Agencies. Please ask us for updates.
Our list is based on the publication of the European Securities and Markets Authority on June 18, 2020. The European Securities and Markets Authority’s last update of this list was on November 14, 2019.
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When searching for the term “rating system”, you might come across a rating system for boats. Boats of different sizes and characteristics would not have an equal chance to win in races. The rating system for boats shall correct their elapsed time difference and put them on the same level. Boat owners, sailors, designers and handicappers are always looking for solutions that work as boat designs change with time.
Under these circumstances, an ideal rating system is said to have features like fairness to all boats, from cruisers to racers, with no strong typeforms in design, being open, transparent and freely available with rules that are objective, non-biased and open to input. Ratings should be simple, but accurate, have flexible scoring options for use with different course types, be easy to use and understand and be locally managed but available world wide.
Science and technology was used to develop handicap systems. With a complete set of measurement of the hull with appendages, propeller, stability, rig and sails, it is then possible to use computer software to calculate the theoretical speeds for the boat in various wind conditions. Experts in aero and hydrodynamic science are involved to tell you the performance differences between different boats in different wind conditions and course geometries.
Some tough questions can be answered with the rating system, such as at what wind speed and wind angle will the asymmetric spinnaker be faster than the jib or genoa while reaching. The rating system does not compare the characteristics of one boat to another; it measures how a racing crew can reach their boat’s theoretical performance potential. Such a system can only indirectly affect investment in boats.
The rating systems have no secret factors, everything is calculated and documented, and is available to an even broader audience. The boat rating systems are based on science and complete boat measurement with no guessing or any subjective element. The system helps to understand the theoretically possible performance of boats and to some extent also influence the choice of a boat. The boat rating systems are administered by national rating offices established worldwide in each country that has active offshore rating.