(TASS) – The president said such an agency would be highly expedient, since the United States-controlled international rating agency were too biased
Russia’s would-be rating agency should be really independent and enjoy confidence of all market players, Russian President Vladimir Putin said on Monday.
“It should be a really independent agency, which would enjoy confidence of all market participants,” Putin said at a meeting with Russian Central Bank governor Elvira Nabiullina.
The president said such an agency would be highly expedient, since the United States-controlled international rating agency were too biased. “I remember our discussion with the former leaders of the European Commission when they expressed indignation at the actions of our American partners, saying that many assessments given by international, but in fact American, rating agencies are not objective,” Putin said. “I remember only too well their indignation at such state of things. And back then, they said they would establish their own, additional, independent agencies. Russia must look at that too.”
National agency may begin to assign ratings by mid-2016
Elvira Nabiullina noted that Russia’s yet-to-be created National Rating Agency may issue its first rankings by the middle of 2016.
The president asked when the agency might be up and running.
“Market participants are going to establish this agency by the end of this year, but the first ratings may begin to be assigned actively some day in the middle of next year,” Nabiullina said.
“Professionals of the highest qualification will be invited. The operation of the rating agency will be absolutely transparent and based on the best international practices from the standpoint of methodology, etc. We are hoping that investors will have confidence in that rating agency. For our purposes (of regulation and supervision and for refinancing) we will be using the assessments of that rating agency made on the national scale,” Nabiullina said.
She pointed out that “it will be a project of market participants.”
“The Bank of Russia will not participate in it with its money. We will merely arrange for that project. It will rest upon the principles that will enjoy credibility with investors,” Nabiullina said, adding it would be essential to achieve investor confidence and transparent operation of that agency, which should be rather strong.
“If we fail to cope with this task, the agency’s creation will make no sense,” Putin said.
Nabiullina said that each participant in the project would have a share less than five percent. “There should be the certainty no big player will be able to determine the operation of the rating agency on one’s own and the agency will remain open to many investors. The participant’s lowest membership fee will be 50 million rubles, and the initial start-up capital, 3 billion rubles.