Egypt FRA nods to establishing national credit rating firms

ArabFinance: The Financial Regulatory Authority (FRA) has approved a new amendment to the licenses and shares ownership rules at credit rating companies, according to a press release.

The amendment allows the establishment of local credit rating companies after the cancellation of the condition stipulating that the national company shall have an international credit rating agency as a shareholder to be established.

This decision will encourage setting up credit rating agencies in the Egyptian non-banking financial sector, which will contribute to the sectors performance and create a competitive atmosphere the serve institutions, markets, and customers, Chairman of the FRA Mohammed Omran said.

This will also support the number of bond issuances, which amounted to 24 issuances in 2021, Omran added, noting that this number is expected to double after the disclosure of new legislations related to the securitization of future financial rights and sustainable bonds as per Egypt Vision 2030.