ADVOKS GLOBAL · KENYA
The Capital Markets (Credit Rating Agencies) Regulations
13. Rating process
Edition: 2023-12-15 · In force
13. Rating process
Each credit rating agency shall—(a)specify the rating process;(b)file with the Authority a copy of the rating process and any modifications or additions made to the rating process.(c)in all cases, follow a proper rating process;(d)have professional rating committees comprising members who are adequately qualified and knowledgeable to assign ratings;(e)ensure that each rating decision, including a decision regarding changes in a rating, is made by the rating committee;(f)be staffed by analysts who are qualified to carry out ratings;(g)inform the Authority in writing about new rating instruments and symbols used by the credit rating agency;(h)while rating a security or issuer, exercise due diligence to ensure that the rating given by the credit rating agency is fair and appropriate;(i)not rate securities issued by the credit rating agency;(j)not change the rating definition and structure of a particular rating product without first notifying the Authority in writing; and(k)disclose to the public and investors through its website and other appropriate medium the rating assigned to an issuer or security issued by a client after periodic review including changes in the rating, if any.