Two of the four are active in the market of the Russian rating agencies — National rating Agency (NRA) and “Rus-Rating” is not accredited with the Bank of Russia. In this regard, from January 13, they will cease to assign and maintain their credit ratings. This was reported by representatives of the NRA and “Rus-Rating”.
All rating agencies operating in Russia should obtain accreditation of the CB and to get into the registry of the regulator according to the law “On the activities of credit rating agencies” (222-FZ), which entered into force in July 2015. The presence in the registry of the Central Bank is a prerequisite to do business in the assignment of credit ratings on a national scale.
The law sets for agencies two “deadline”. The first — January 13, 2017. From that date, the ratings of Russian agencies, which have not been accredited by the Central Bank, can no longer be used by the Bank of Russia for regulatory purposes. Practically, this means, for example, that issuers with such ratings will not be able to place the paper on the Moscow stock exchange, they cannot obtain loans from the Bank of Russia, since the regulator will not include them in the Lombard list (the list of securities taken by the Bank as collateral when granting Lombard loans to commercial banks). The second “deadline” is set for international rating agencies, it will expire on 13 July 2017.
In Russia works of the Russian five (“Expert RA”, NRA, “Rus-Rating”, AK&M and the newly created group of major shareholders, with the support of the Central Bank ACRES), and three foreign credit rating agencies: Standard & Poor’s, Fitch Ratings and Moody’s. At the moment the Bank of Russia accredited the only Agency of the AKP and the “Expert RA”.
The NRA has applied for accreditation to the Central Bank at the end of 2016, however, received from the controller failure. In a press release from the Agency dated 28 December 2016 said that the NRA plans to re-apply to the Central Bank in early 2017. For 222-FZ the bases for denial of accreditation may not be granted to CBA in full documents, false information in them or if the key representatives of agencies with regulatory requirements.
As said managing Director of NRA Pavel Samiev, a re-application to the Central Bank by the Agency is not yet filed. He could not identify the specific date of its filing, but assured that it will happen soon. “In the meantime, from 13 January to the time of inclusion in the register, credit ratings in accordance with 222-FZ are maintained and assigned by the Agency will not. As we urgently need to flip the application, the fundamental effect on the NRA, this situation will not help”, — says Samiev.
The Agency “Rus-Rating” has also received from the Central Bank at the end of 2016, the refusal of accreditation. Now “Rus-Rating” examines the reasons for the refusal of the Central Bank to make it to the registry and in the near future can serve lets application, according to a press release from the Agency. From 13 January to accreditation in the Central Bank “Rus-Rating” has decided to withdraw about 90 credit ratings on a national and international scale without the possibility of updates to the release.
As “Rus-Rating” assigns credit ratings, then, as representative of the Agency, its main activity now is focused on the adjustment of documents for submission to the Bank of Russia. “I also want to note that the Agency is not closed,” — said the representative of the “Rus-Rating”.
The agencies that refused to assign credit ratings, you can expect lower income, as they actually lost their main income, says the chief analyst of PSB Igor Nuzhdin. “I think that the beginning of 2017, and possibly through to 2017 can be quite heavy in terms of earnings. In addition, issuers for which the credit rating was not part of the image, and can advance to other accredited agencies, the Central Bank,” he said.
With this agrees the adviser on macroeconomics General Director of the “OTKRITIE Broker” Sergey hestanov. “But by reducing costs, the NRA and “Rus-Rating” will be able to function normally even in the absence of accreditation of the CB to year,” he admits. While hestanov considers that the repeated submission of documentation the regulator may go to these agencies to meet. “The market presence of only two accredited players is very small. It seems to me that the probability of at least a third of accredited agencies close to 100%,” said Chestnov.
As for foreign agencies “big three”, they aimed at establishing branches in Russia. This format means that they can assign to Russian issuers only international ratings. The representative of the Standard & Poor’s announced that the package of documents for registration of the branch company was sent by the Central Bank on 28 December 2016. “The documents taken into consideration by the regulator. We hope to complete the process of registration in the terms established by law (until July 13, 2017. —)”, — said S&P. the Fitch said that the establishment of a branch company in Russia is considered as “high probability”, but the long-term business structure in Russia is still under discussion. The representative of Moody’s has said that the Agency aims to maintain its active presence in the Russian market and the continued work on assigning ratings on a global scale.
The Bank of Russia did not respond to questions about the prospects of accreditation of the NRA, “Rus-Rating” and the “big three”, noting that not comment on the operating companies. While the Central Bank has reminded that the law adopt a decision on the inclusion or non-inclusion of applicants in the registry of credit rating agencies in a period of six months from the date of filing. Representatives of AK&M did not answer the questions .