This move follows Beltone's alliance achieving the highest level of compliance with the selection criteria to be granted the license.

Other applicants included MGM Financial & Banking Consultants, India’s Infomerics Ratings, the Egyptian Credit Bureau (I-SCORE), and S&P Global Ratings.

Credit rating agencies assess a debtor’s ability to repay debt and the likelihood of default. Notable credit rating agencies worldwide include S&P, Fitch Ratings, and Moody's Investors Service.

In October 2023, Beltone Capital, a subsidiary of Beltone, signed a framework agreement with CRIF, an international company specializing in credit and business information analytics. This collaboration will focus on ESG scoring, credit rating data science, and business information, with potential cooperation on the Egyptian and MENA scales.

The ESG score quantifies an organization’s environmental, social, and governance efforts through numerical or letter ratings.

In related news, FRA Decree No. 151 of 2023 has opened applications for more licenses for companies in evaluating, rating, and ranking securities fields.

The FRA noted that applications will be assessed based on specified criteria to ensure the highest level of transparency and impartiality.

It also stated that granting another credit rating license will enhance the capabilities of the non-banking financial sector and increase competitiveness, promoting market stability for all stakeholders.

Investors rely on credit rating agencies to make informed financial and investment decisions. To ensure the quality and credibility of these agencies, their activities are regulated and licensed by relevant supervisory authorities based on a strict legal framework.

Middle East Rating & Investor Service (MERIS) is Egypt’s only credit rating agency.

In 2022, the FRA approved regulations for national credit rating companies following an amendment to its decree No. 53 of 2018.