Moscow. June 2. INTERFAX.RU – International rating Agency Standard & Poor’s Global Ratings withdrew all ratings on the national scale, has in Russia.
Thus, according to a press release from the Agency, was withdrawn the ratings 104 48 issuers and issues of securities.
“Nevertheless, S&P GR will continue to support the global scale ratings of all issuers and issues of securities, which it has previously assigned ratings on a national scale. Review ratings for netscale has no effect on the ratings on the international scale”, – stated in the message.
Including the ratings for netscale was withdrawn from AHML, Alfa Bank, VTB and its subsidiaries, Evraz Group, FPC, Gazprombank , “Gazprom oil”, Ingosstrakh, LUKOIL, MegaFon, Norilsk Nickel, NLMK, “Mosenergo”, “Nizhnekamsneftehim”, “NOVATEK”, “Severstal”, “Sovcomflot” TMK, “Children’s world”, Promsvyazbank, Moscow, other cities, regions, and districts of the Russian Federation.
Rating Agency Standard & Poor’s became the last of the agencies of the “big three”, which led its activities in compliance with the new legislation.
Previously, Moody’s and Fitch withdrew a total of more than 300 ratings assigned by them in Russia on a national scale. Moody’s, which was the only one of the “Troika”, which had in Russia a subsidiary company, in addition, shut down in 2016, its local rating Agency in Russia.
The “big three” international credit rating agencies will now work in Russia as branches, assign only the international rankings, which mostly will not be counted for regulatory purposes.
The law theoretically gives the international agencies the opportunity to have in Russia a subsidiary of the company to obtain accreditation and to assign ratings on a national scale. In practice, however, the Agency can not do, as in this case there are contradictions between the Russian legislation and the legislation of the countries where these agencies conduct their basic operations. According to Russian law, the rating Agency shall not withdraw the credit ratings assigned by national rating scale for the Russian Federation in connection with the “decisions of the authorities of foreign States” (for example, in the case of the imposition of sanctions or other legal entities). This requirement effectively means the necessity of choosing between the implementation of the legislation of the Russian Federation and the legislation of the countries where the main business of agencies (USA, EU). In addition, as industry officials say, the creation of subsidiaries that meet the requirements of the law, sharply would increase the cost of the “Troika” on the assignment of ratings on the national scale, while limiting the ability of local agencies to use the global resources of parent companies.
From 14 July of the current year, the Central Bank will no longer accept the ratings agencies “big three” in the regulation of the securities market, collective investments, pension funds, insurance companies and the inclusion of securities from the Lombard list, and leaves them only in terms of banking regulation.
Amid a sharp decline in the presence of international rating agencies accredited by the Central Bank has so far received only two rating agencies operating on a national scale – ACRE and the “Expert RA”. ACRES as of 12 may assigned a total of 22 credit rating.