Kazakhstan to create national credit rating agencies

The law establishes a legal framework for creating and operating credit rating agencies, including the development of domestic rating organizations.

The document aims to regulate rating activities, protect the rights and interests of rated entities and users of credit ratings, and ensure transparency and independence of rating agencies.

It establishes key operating principles in this sphere, including requirements for procedural transparency, rating quality, conflict-of-interest prevention, and information confidentiality. The law also sets out rating agencies' operating conditions, capital requirements, assessment methodologies, and the procedure for recognizing international and foreign rating organizations.

The amendments establish the voluntary nature of obtaining credit ratings. At the same time, state-owned legal entities are required to have a credit rating to enhance the transparency and investment attractiveness of these organizations.

The country's rating agencies are required to maintain a charter capital and are granted access to state databases to carry out their activities.

The law also sets out procedures for assigning unsolicited and private credit ratings, including the possibility of assigning them without the rated entity's approval.

A related law expands the powers of the authorized body that regulates and supervises rating agencies. It also allows banks and insurance companies to invest in the capital of credit rating agencies.

Earlier, Kazakhstan’s Majilis ratified a border regime agreement with Uzbekistan.