As in many other countries, the work of Credit Rating Agencies has been regulated in the Kingdom of Saudi Arabia, since ratings are referenced in various ways in the financial system. It is therefore necessary to determine which Credit Rating Agencies give the relevant ratings. On November 10, 2014, the Capital Market Authority of Saudi Arabia issued the Credit Rating Agencies Regulations, coming into effect September 1st 2015. The Capital Market Authority of Saudi Arabia announced on September 16, 2015 that it received applications from six companies to be authorized to carry out credit rating activities in the Kingdom of Saudi Arabia.
Six companies applied at that time to be licensed to conduct credit rating activities in the Kingdom under the new regulations:
- Saudi Credit Bureau ((SIMAH),
- 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 Credit Rating Agencies Regulations has been implemented to regulate and monitor the conduct of Credit Rating Agency activities in the Kingdom of Saudi Arabia, and to specify the procedures and conditions to be met prior to obtaining authorization to conduct such activities.
Subscribe to get access
Read more of this content when you subscribe today.
Authorization of Credit Rating Agencies
Moody’s Strong Q1 2024 Performance: Implications for Competing Rating Agencies
Moody’s Corporation’s robust financial results for the first quarter of 2024 have significant implications for the competitive landscape of credit rating agencies. With a 21% surge in overall revenue and a standout 35% increase in revenue from Moody’s Investors Service, the company is setting a brisk pace in an industry that thrives on market perception…
The ECB’s Future Agenda: Resilience, Sustainability, and Digital Innovation
ECB’s Supervisory Priorities for 2024-2026: A Vision by Dr. Thomas Gstädtner In the esteemed eff European Finance Forum, Dr. Thomas Gstädtner, Head of Division, DG Micro-Prudential Supervision II at the European Central Bank (ECB), took the stage to elaborate on “The supervisory priorities of the ECB for 2024 to 2026”. With a robust career that…
ESMA Fines Scope Ratings Over EUR 2 Million for Conflict of Interest Breaches, Highlighting Need for Timely Regulatory Decisions
The European Securities and Markets Authority (ESMA), the chief regulator and supervisor for the EU’s financial markets, has levied a significant fine of EUR 2,197,500 against Scope Ratings GmbH (Scope) for violating the Credit Rating Agencies Regulation (CRA Regulation). This action stems from Scope’s failure to meet the CRA Regulation’s demands regarding the management of…
Morningstar, Inc. Continues to Expand Global Reach and Expertise
Morningstar, Inc., a leading provider of independent financial research and credit ratings, has announced significant milestones in its diverse range of services as of December 31, 2023. In conclusion, Morningstar, Inc. continues to demonstrate its dedication to providing comprehensive financial research and analysis, catering to the evolving needs of investors across the globe. Through its…
Ensuring Integrity: The Importance of Self-Evaluation for Rating Agencies
Moody’s Corporation has proudly announced that it has received three prestigious recognitions for its sustainable business practices, highlighting its ongoing commitment to environmental, social, and governance (ESG) considerations. As a renowned global integrated risk assessment firm, Moody’s sees sustainability as a fundamental aspect of conducting business and emphasizes the importance of leading by example. In…
EU’s ESG Rating Regulation Aims to Challenge Non-European Dominance
The European Union (EU) has recently reached a preliminary agreement between the EU Council and Parliament on the regulation of Environmental, Social, and Governance (ESG) ratings. This move is perceived as an attempt to break the dominance of non-European rating agencies, particularly those based in the United States. While the agreed-upon transparency rules seem to…
^^^ RATING EVIDENCE GmbH 