RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF BELARUS

of August 12, 2019 No. 324

About methodology, the reporting and other information of rating agency

Based on paragraphs of the fourth, eighth and twelfth Item 12 of the Charter of the National Bank of the Republic of Belarus approved by the Presidential decree of the Republic of Belarus of June 13, 2001 No. 320, of part one of article 39 of the Bank code of the Republic of Belarus Board of National Bank of the Republic of Belarus DECIDES:

1. Approve the Instruction about methodology of rating agency, and also the reporting and other information in the sphere of implementation of rating activities it (is applied).

2. This resolution becomes effective since January 1, 2020.

Approved by the Resolution of Board of National Bank of the Republic of Belarus of August 12, 2019 No. 324

The instruction about methodology of rating agency, and also the reporting and other information in the sphere of implementation of rating activities

Chapter 1. General provisions

1. This Instruction establishes requirements to methodology of rating agency (further – methodology), procedure for submission to National Bank and coordination with it of methodology, changes of methodology, and also determines procedure and terms of creation and submission to National Bank of the reporting and other information in the sphere of implementation of rating activities.

2. For the purposes of this Instruction terms are used in the following values:

foreign (international) rating agency – the legal entity created according to the legislation of foreign state and who acquired the right to implementation of rating activities according to the legislation of this state;

the expert – the physical person, including the authorized representative of the legal entity who is not the employee of rating agency is not interested in specific result of rating action having special knowledge and working experience attracted by rating agency to receipt of expert evaluation;

expert evaluation – the opinion of the expert based on special knowledge and working experience.

The terms "affiliated economic society" and "dependent economic society" are used in the values determined respectively by part one of Article 7 and part one of article 8 of the Law of the Republic of Belarus of December 9, 1992 No. 2020-XII "About economic societies".

The term "creditors" is used in the value determined by Item 19 of article 1 of the Law of the Republic of Belarus of December 13, 2022 No. 227-Z "About insolvency settlement".

The terms "accreditation" and "rating agency" are used in the values determined respectively by paragraphs to the second and fourth part one of Item 3 of the Regulations on procedure for carrying out accreditation of rating agencies, including procedure for their inclusion in the register of rating agencies (exception of it) and structure of the data included in the register approved by the resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of August 12, 2019 No. 530/14.

The term "financial instrument" is used in the value determined by the International accounting standard (IAS) 32 "Financial instruments: representation", the enacted resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of August 19, 2016 No. 657/20.

The terms "default", "additional services", "client", "credit rating", "methodological committee", "methodology", "monitoring of subject to rating", "motivated appeal", "not requested credit rating", "non-public credit rating", "subject to rating", "response", "departure from methodology", "review", "review of methodology", "confirmation", "press release", "assignment", "forecast", "rating activities", "rating category", "rating action", "rating committee", "sovereign credit rating" and "level of credit rating" are used in the values determined by part one of Item 2 of the Regulations on procedure for the organization and the implementation of rating activities approved by the resolution of Board of National Bank of the Republic of Belarus of August 12, 2019 No. 325.

Chapter 2. Requirements to methodology, procedure for submission to National Bank and coordination with it of methodology, changes of methodology. Departure from methodology and its review

3. The rating agency has one or several methodologies necessary for implementation of rating activities.

4. The methodology meets the following requirements:

4.1. contains:

the list of subjects to rating to which the methodology is applied, including instructions on subjects to rating to which this methodology is not applied (if necessary);

the key quantitative and high-quality factors determining solvency of subject to rating, its creditworthness, financial stability, readiness to fulfill the assumed financial liabilities and (or) reliability emitted (issued) it financial instruments;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info