When applying the regulatory acts of the regulator, the ratings of S&P, Fitch and Moody’s as of February 1 will be used. The measure was taken to reduce the impact of ratings on the work of banks in the face of instability and sanctions
Photo: Andrey Lyubimov / RBC
When applying the regulations of the Central Bank, credit ratings assigned by Standard & Poor’s, Fitch Ratings and Moody’s as of February 1 will be taken into account, the regulator said in a statement.
This was done in order to reduce the impact of international ratings on the activities of banks “in conditions of high market volatility and sanctions pressure.”
The Central Bank noted that in accordance with the rules, if the regulatory act of the regulator uses a credit rating assigned by a foreign credit rating agency to legal entities, including credit institutions, Russia and its constituent entities, municipalities, securities issued by them or other financial instruments, then The Board of Directors of the Bank of Russia may determine the date on which the specified rating was assigned under the relevant act.
The resolution also notes that although the Central Bank has largely switched to using the ratings of Russian agencies on the national scale, “in certain aspects of banking regulation” the requirements for international ratings are used. These operations include determining the quality category of Eurobond collateral, assessing the possibility of accounting for collateral for repo transactions, and determining the composition of highly liquid assets.
