Chairman of FRA Mohammed Omran
The amendment also cancelled the requirement that global credit rating agencies be a shareholder in such a company in order for it to be established.
Chairman of the FRA Mohammed Omran said their action was undertaken to stimulate the creation of these companies in the domestic market’s non-banking sector, which will enhance the sector’s capabilities and create an atmosphere of competitiveness.
He added that the action also backs the country’s increasing number of bond issuances – 24 in 2021 – a number that is expected to grow in 2022 in response to a recently approved law regarding securitisation and Egypt’s anticipated issuance for the first time of sustainable bonds in line with its Vision 2030.
Credit rating agencies’ main activity is to evaluate the credit risk of corporations and governments as borrowers and the issuers of fixed-income securities and their ability to repay their financial obligations to the international financial institutions (IFIs).
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