Bank of Russia Board of Directors assigns credit ratings for the purposes of Bank of Russia Ordinance No. 4298-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. 4298-U, dated 22 February 2017, ‘On the Procedure for Investing an Insurer’s Capital 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 7.7, 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 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, and Public Finance and Global Infrastructure Obligations Rating;
credit ratings by S&P Global Ratings — Issuer Credit Rating and Long-term Issue Credit Rating;
credit ratings by Moody’s Investors Service — Issuer Rating, Corporate Family Rating, Long-Term Obligation Rating, and Bank Deposit Rating. Corporate Family Rating is used with regard to an issuer only if this rating is directly assigned to such issuer.
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;
ratings by 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 7 November 2018 and published on its website on 15 November 2018 on credit ratings assigned pursuant to Bank of Russia Ordinance No. 4298-U, dated 22 February 2017 (Minutes No. 34), as amended.

09 October 2019
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