Translation. Region: Russian Federal
Source: Central Bank of Russia –
An important disclaimer is at the bottom of this article.
The Bank of Russia has approved the methodologies of two credit rating agencies (CRAs) for assigning non-credit ratings to ordinary shares. This is a new product on the market, which represents an assessment of the fair value of companies. It will become an additional reference point for investors when making investment decisions.
The pilot included OOO National Credit Ratings and OOO National Rating Agency. When assessing issuers, the CRAs will take into account how companies comply with corporate legislation, including investor protection standards, then assign "stars" to shares and accompany the ratings with extended analytics.
The first issuers to be rated will be companies fromShareholder Value Creation Programs.
At the end of the year, the Bank of Russia will analyze the experience gained and, if it proves positive, will consider the possibility of using stock ratings in financial regulation.
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