Financial oversight receives applications for Egypt’s second credit rating company

Thursday 23 Nov 2023

Egypt’s Financial Regulation Authority (FRA) received three applications from local institutions in partnership with foreign entities seeking a licence to evaluate, classify, and arrange securities (credit rating), according to a statement on Wednesday.

Financial Regulatory Authority.
Financial Regulatory Authority.

 

The applicants include three conglomerates: MGM Financial & Banking Consultants and India’s Infomerics Ratings; Beltone Capital and Italy’s CRIF Ratings; and the Egyptian Credit Bureau (I-SCORE) and S&P Global Ratings.

The FRA announced that a committee was formed to evaluate these applications to grant a new single licence to the application most aligned with transparency standards.

According to the FRA, issuing a new licence aims to bolster the financial sector's capabilities, intensify market competition, and enhance stability.

The authority provided three months, beginning in August, for companies to apply for this licence.

Egypt has only one licenced credit rating agency, Middle East Rating & Investors Service (MERIS), a partnership between Moody’s Investors Service and Egypt’s Finance & Banking Consultants International (FinBi).

In 2022, the FRA approved rules establishing national credit rating companies after introducing an amendment to the authority's decree No. 53 of 2018. The amendment waived the requirement stipulating that the establishment of local rating agencies be conditioned on having a global partner.  

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