Credit Rating Cos Regulation: SECP empowered to relax requirements

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has been empowered to relax any of the requirements of Credit Rating Companies Regulation, 2016, for such companies operating in Pakistan.

The SECP has amended Credit Rating Companies Regulation, 2016, through a notification issued, here on Wednesday.

According to the revised Credit Rating Companies Regulation, where the Commission is satisfied that it is not practical to comply with any of the requirements of Regulation, it may, for reasons to be recorded, based on the application of the company relax the same subject to such conditions as it may deem fit.

The SECP has also defined "Solicited Rating", which means a rating granted by the credit rating company where the Rating Agreement is established with the entity; and "Un-solicited Ratings" means a rating not initiated at the request of the Rated Entity or its Agents or not maintained at the request of the Rated Entity or its Agents.

The SECP has specified that the "Private Ratings" means a rating opinion not available in public domain.

Provided that the shareholders of the newly-formed credit rating company shall comply with the specified requirement within a period of three years from the date of obtaining license, revised Credit Rating Companies Regulation states.