Bank of Russia Board of Directors assigns credit ratings for the purposes of Bank of Russia Ordinance No. 4297-U, dated 22 February 2017 (09.10.2019)

Source: Central Bank of the Russian Federation in English

The Bank of Russia Board of Directors took the following decision:
1. For the purposes of Bank of Russia Ordinance No. 4297-U, dated 22 February 2017, ‘On the Procedure for Investing Insurance Reserve Funds and the List of Assets Eligible for Investment’ (hereinafter, the Ordinance) to assign the following credit ratings:
1.1. With regard to assets in the Russian Federation:
pursuant to Paragraph 4, Subclause 7.1, Clause 7 of the Ordinance for subordinated bond issuers (issues) — ruA- on the national rating scale for the Russian Federation in the classification of JSC Expert RA or A-(RU) on the national rating scale for the Russian Federation in the classification of ACRA JSC;
pursuant to Paragraph 2, Subclause 7.6, Clause 7 of the Ordinance for banks in which subordinated deposits are placed — ruAAA on the national rating scale for the Russian Federation in the classification of JSC Expert RA or AAA(RU) on the national rating scale for the Russian Federation in the classification of ACRA JSC;
pursuant to Paragraph 4, Subclause 7.11.1, Clause 7 of the Ordinance for mortgage bond issuers — ruAAA on the national rating scale for the Russian Federation in the classification of JSC Expert RA or AAA(RU) on the national rating scale for the Russian Federation in the classification of ACRA JSC; for mortgage bond issues — AAA(ru.sf) on the national rating scale of the structured finance sector for the Russian Federation in the classification of ACRA JSC;
pursuant to Clauses 5 and 6 of the Appendix to the Ordinance — the highest credit rating of ruBBB and the lowest of ruBB on the national rating scale for the Russian Federation in the classification of JSC Expert RA or the highest credit rating of BBB(RU) and the lowest of BB(RU) on the national rating scale for the Russian Federation in the classification of ACRA JSC;
pursuant to other standards of the Ordinance — the ruBB on the national rating scale for the Russian Federation in the classification of JSC Expert RA or BB(RU) on the national rating scale for the Russian Federation in the classification of ACRA JSC.
1.2. With regard to assets excluding those specified in Subclause 1.1, Clause 1 of this decision (foreign rated entities):
pursuant to Paragraph 2, Subclause 7.2, Clause 7 of the Ordinance for securities issuers (issues) or the sureties (guarantors) for such securities — B- on the S&P Global Ratings international rating scale or B3 on the Moody’s Investors Service international rating scale or B- on the Fitch Ratings international rating scale;
pursuant to Paragraph 1, Subclause 7.8.2, Clause 7 of the Ordinance for non-resident reinsurers that are residents of the Eurasian Economic Union (EAEU) with 100% state participation in their capital — B on the S&P Global Ratings international rating scale, or В2 on the Moody’s Investors Service international rating scale, or В on the Fitch Ratings international rating scale, or В- on the A.M. Best Co international rating scale;
pursuant to Paragraph 1, Subclause 7.8.2, Clause 7 of the Ordinance for non-resident reinsurers that are not specified in Paragraph 3, Subclause 1.2, Clause 1 hereof — BB+ on the S&P Global Ratings international rating scale, or Вa1 on the Moody’s Investors Service international rating scale, or ВB+ on the Fitch Ratings international rating scale, or В on the A.M. Best Co international rating scale;
pursuant to Clauses 5 and 6 of the Appendix to the Ordinance — the highest credit rating of B+ and the lowest of B- on the S&P Global Ratings international rating scale, or the highest credit rating of B1 and the lowest of B3 on the Moody’s Investors Service international rating scale, or the highest credit rating of B+ and the lowest of B- on the Fitch Ratings international rating scale;
pursuant to other standards of the Ordinance — B- on the S&P Global Ratings international rating scale or B3 on the Moody’s Investors Service international rating scale or B- on the Fitch Ratings international rating scale.
2. For the purposes of this decision, to use the following types of credit ratings assigned by foreign credit rating agencies:
credit ratings by Fitch Ratings — Issuer Default Rating, Corporate Finance Obligations Rating, Public Finance and Global Infrastructure Obligations Rating, and Insurer Financial Strength Rating. Insurer Financial Strength Rating is applied only for the purpose of Paragraph 1, Subclause 7.8.2, Clause 7 of the Ordinance;
credit ratings by S&P Global Ratings — Issuer Credit Rating, Long-term Issue Credit Rating, and Insurer Financial Strength Rating. Insurer Financial Strength Rating is applied only for the purpose of Paragraph 1, Subclause 7.8.2, Clause 7 of the Ordinance;
credit ratings by Moody’s Investors Service — Issuer Rating, Corporate Family Rating, Long-Term Obligation Rating, Bank Deposit Rating, and Insurance Financial Strength Rating. Corporate Family Rating is used with regard to an issuer only if this rating is directly assigned to such issuer. Insurance Financial Strength Rating is applied only for the purpose of Paragraph 1, Subclause 7.8.2, Clause 7 of the Ordinance;
credit ratings by A.M. Best Со — Financial Strength Rating.
3. For the purposes of this decision, to use the following types of credit ratings assigned by the credit rating agencies ACRA JSC and JSC Expert RA:
ratings by ACRA JSC — credit ratings assigned on the national rating scale for the Russian Federation; credit ratings assigned on the national rating scale of the structured finance sector for the Russian Federation;
for the purposes of Clauses 20 and 21 of the Appendix to the Ordinance — JSC Expert RA — financial strength rating of insurance companies and financial strength rating of life insurance companies;
for the purposes of other provisions of the Ordinance — JSC Expert RA — credit ratings assigned on the national rating scale for the Russian Federation, except for financial strength ratings of insurance companies and financial strength ratings of life insurance companies.
4. This decision is to be applied from the day it is published on the Bank of Russia website.
5. From the date this decision becomes effective, to invalidate the decision taken by the Bank of Russia Board of Directors on 12 October 2018 and published on its website on 15 November 2018 on credit ratings assigned pursuant to Bank of Russia Ordinance No. 4297-U, dated 22 February 2017 (Minutes No. 32), as amended.

09 October 2019
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