The Capital Market Authority announced that it received applications from six companies to be authorized to carry out credit rating activities in the Kingdom. The Credit Rating Agencies Regulations was issued by the CMA on November 2014, coming into effect September 1st 2015. Six companies applied thus far to be licensed to conduct credit rating activities in the Kingdom under the new regulations:
(SIMAH) the Saudi Credit Bureau, 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 CMA announced on 21st Ramadan 1436H corresponding to 8th July 2015 that Credit Rating Agencies involved in activities within the Saudi Market and who applied for Authorization from the CMA prior to the 1st of September 2015 would be allowed to carry out their activities uninterrupted until August 31st 2016. Furthermore, the CMA has required that all credit rating agencies that fall under this classification must acquire all necessary the required authorizations from the authority prior to 31st August 2016 and letter to continue operations as a licensed credit rating agency thereafter.
Companies that have applied prior to 1st September 2015 are Standard & Poor’s, Moody’s, 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, and to specify the procedures and conditions to be met prior to obtaining authorization to conduct such activities.
