GCC countries to launch “credit rating agency”
Thursday, 04 14 2016, Category: Rating, Country: Gulf Cooperation Council
The “Asharq Al-Awsat” reported some sources as saying that Gulf banking groups are preparing a common project to establish a “credit rating agency” for financial services companies and sovereign debts of the region.
This step follows the failure of international credit rating agencies in adequately evaluating sovereign debt and the funds launched by large Arab financial companies in particular in the Gulf region.
The former chairman of the Union of Arab Banks Dr. Adnan Yousef and President & Chief Executive of “Al Baraka Banking Group” revealed two scenarios for such an agency. The first is related to the Islamic International Rating Agency based in Manama which would be strengthened and adopted given that it currently issues ratings for Gulf governments and companies.
The second scenario is to establish a joint company with the current international rating agencies, which would be more specialized in the issues of the countries of the region.