International Financial Services Centres Authority (IFSCA) Revises Credit Rating Rules for GIFT City

Key facts

• The International Financial Services Centres Authority (IFSCA) has revised the Master Circular for Credit Rating Agencies operating in GIFT City.
• Credit rating agencies (CRAs) must now provide issuers an opportunity to review factual errors, omissions or misperceptions before publication of a rating action.
• Issuers cannot influence rating opinions, and the final analytical judgment rests solely with the CRA.
• The pre-publication review requirement does not apply to unsolicited ratings and private credit rating assignments.
• Record-keeping norms have been tightened to require CRAs to maintain accurate, detailed records to reconstruct the rating process.
• The scope of credit ratings has been expanded to include credit quality ratings, financial strength ratings, and ratings for issuers.
• Private credit rating assignments are exempted from mandatory public disclosure requirements.
• Unsolicited ratings are kept outside the mandatory disclosure framework.
• CareEdge Global IFSC Ltd and S&P Global Ratings Singapore Pte. Ltd are the two CRAs currently registered in GIFT City.
• Moody’s Investors Service Singapore Pte. Ltd has applied to IFSCA to establish a presence in GIFT City.