The Capital Market Authority of Saudi Arabia (CMA) stated that it has received applications from six companies to be authorized to carry out credit rating activities in the Kingdom. The Credit Rating Agencies Regulations was issued by the CMA on November 2014, which came into effect Sept. 1 2015.
Six companies applied thus far to be licensed to conduct credit rating activities in the Kingdom under the new regulations include the Saudi Credit Bureau (SIMAH), Standard & Poor’s Credit Market Services Europe Ltd., Moody’s Investors Services Middle East Ltd., Fitch Ratings, the Islamic International Rating Agency, and A.M. Best Europe-Rating Services Ltd.
The CMA announced on July 8, that credit rating agencies involved in activities within the Saudi market and who applied for authorization from the CMA prior to Sept. 1, 2015, would be allowed to carry out their activities uninterrupted until Aug. 31, 2016.
Furthermore, the CMA has stipulated that all credit rating agencies falling under this classification must acquire all necessary required authorizations from the authority prior to Aug. 31, 2016, and letter to continue operations as a licensed credit rating agency thereafter.