ADVOKS GLOBAL · KENYA
The Capital Markets (Credit Rating Agencies) Regulations
5. Eligibility of applicants
Edition: 2023-12-15 · In force
5. Eligibility of applicants
An entity that is established in Kenya shall be eligible to apply for approval under regulation 4 if that entity—(b)has specified in its formation documents that the rating of securities and issuers of securities is one of its main objectives;(c)has a stable financial base with a minimum paid up capital of at least twelve million shillings;(d)has adequate infrastructure to enable the entity to provide rating services as prescribed under the Act and these Regulations;(e)has professional competence, financial soundness and general reputation for fairness and integrity in business transactions to the satisfaction of the Authority;(f)is not or any of its directors is not involved in any legal proceedings connected with the securities market which may have an adverse impact on the interests of investors has not been convicted of any offence involving moral depravity or of any economic offence;(g)has in its employment, persons having adequate professional and relevant experience to the satisfaction of the Authority;(h)is a fit and proper entity as provided under section 24A of the Act for the grant of an approval;(i)has a sample standard agreement between the entity and its clients; and(j)has a—(i)sample letter of request for rating; and(ii)draft of the information requirements for rating a security and an issuer.