ASTANA—The Kazakh Agency for Regulation and Development of the Financial Market (KARDFM) has developed a draft law to establish a national rating agency, aiming to enhance the financial market infrastructure. The proposed legislation sets the foundation for creating the Kazakh credit rating agency.
Photo credit: Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
According to Kazinform, the project incorporates recommendations from the International Organization of Securities Commissions (IOSCO) regarding credit rating agency activities.
The draft law outlines the fundamental principles for the rating agency’s operations, including corporate governance, organization of rating activities, conflict of interest management, information disclosure and other requirements in line with the IOSCO Code of Professional Conduct for credit rating agencies.
“This rating agency is necessary to provide the market with high-quality, objective and affordable rating services. It will expand financing for the real sector of the economy through the bond market, reduce financial stability risks and establish a center of expertise in independent credit risk assessment,” said Madina Abylkasymova, chairwoman of the KARDFM.
Kazakh financial organizations, financial market infrastructure entities and development institutions are expected to participate in the rating agency. Negotiations are also underway with foreign rating agencies to act as strategic partners for the Kazakh rating agency. The bill is expected to be submitted to the Kazakh Parliament by the end of the year.
At the moment, Kazakhstan’s rating services market is represented by international rating agencies, including S&P, Moody’s and Fitch.
