Ghana is likely to have its first credit ratings agency begin operations this year.
The Securities and Exchange Commission (SEC) is projecting the second half of this year for the passage of regulations that will make it possible for credit ratings agency to become operational.
The Commission is currently gathering information of what is required to license the Credit Rating Agencies even as the law is currently under review at the Attorney General’s department.
“We are expecting that within the early part of the second half of this year, the law will be passed; it will be a stand-alone institution like a fund manager but its work will be to give independent ratings of financial instruments so people based on that make purchases,” Head of Market Surveillance at the Securities and Exchange Commission, Emmanuel Mensah-Appiah disclosed to Citi Business News.
Credit ratings agencies provides opinion on the creditworthiness of an entity and the financial obligations (such as, bonds, preferred stock, and commercial paper) issued by an entity.
Ghana over the years has been rated by Fitch, Standard and Poor’s, Moody’s and a host of others.
Speaking further on the matter, Mr Mensah-Appiah said: “For the international financial institutions, sometimes, an investor can tell its fund manager, don’t buy anything with the rating below, say AAA, so that it will reduce its rate; so it is very important to help establish the credit ratings agency in Ghana.”
By: Lorrencia Nkrumah/citifmonline.com/Ghana
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