The Philippine Securities and Exchange Commission has launched a consultation on replacing its existing credit rating agency rules with a comprehensive accreditation and supervisory framework. The proposals would expand coverage to ratings for corporate bonds, commercial paper, structured products, sukuk, covered bonds, sustainability-linked instruments and other Philippine debt securities. They would also make accreditation a substantive assessment of a credit rating agency’s financial resources, governance, personnel, methodologies, controls and reporting systems. Key measures include minimum capital of PHP 50 million at accreditation, rising to PHP 70 million after three years, majority-independent boards and prior approval for key appointments and changes resulting in a new controller. The draft would strengthen analyst competence and independence, separate commercial and analytical functions, regulate rating committees and withdrawals, and require enhanced surveillance, methodology review, internal controls and conflict management. It would also introduce extensive annual, quarterly and event-driven regulatory reporting, alongside public disclosure of methodologies, rating reports, default rates, transition data and governance information. Comments are due by July 24, 2026. Under the proposed transition, credit rating agencies accredited when the final circular takes effect would have 12 months to comply and would need to submit implementation plans within three months of effectivity.

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