Kazakhstan plans to establish local credit rating agencies with competitive pricingKazakhstan is set to introduce legislation on credit rating agencies in 2025, with the cost of obtaining a rating from local agencies expected to be around $17,500, according to Adil Mamazhanov, Deputy Director of the Securities Market Department at the Agency for Regulation and Development of the Financial Market."This can be illustrated by data from Russia, where there is a well-developed market for rating services. As of the end of 2023, the average cost of a rating there was about $17,500, which is roughly three times lower than the services of international rating agencies. We expect comparable results here in Kazakhstan," Mamazhanov said at a briefing on Thursday.The draft law categorizes credit rating agencies into three groups: international agencies recognized by OECD regulators, foreign agencies registered outside Kazakhstan, and local agencies.The legislation allows financial institutions, stock exchanges, credit bureaus, and state organizations to invest in local rating agencies. "While state involvement could create conflicts of interest, the law incorporates mechanisms based on International Organization of Securities Commissions (IOSCO) recommendations to mitigate such risks through diversified ownership structures and independent boards of directors,"  Mamazhanov said.The agency will oversee the recognition of foreign rating agencies, monitor compliance, regulate conflict management, and set disclosure and corporate governance requirements."The initiative aims to establish a competitive Kazakh credit rating agency, making rating services more accessible for businesses, including SMEs," Mamazhanov noted.It is also expected to enhance the corporate bond and securitization market, reduce reliance on international agencies, and strengthen investor protection.Aidyn Dauletbak, director of the Securities Market Department at Kazakhstan's Financial Regulatory and Supervisory Authority, confirmed that the draft law, currently in public consultations, "may be updated with feedback and is expected to be submitted to parliament this year."Currently, Kazakhstan’s credit rating market is dominated by S&P, Moody’s, and Fitch. Plans for a local agency were first announced in 2023, with full implementation expected within seven years. (ICE ALMATY)

Fonte notizia: INTERFAX