The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan presented draft legislation to Parliament’s Mazhilis at first reading that would create a legal framework for regulating credit rating agencies in Kazakhstan, including requirements on independence, transparency and accountability and the establishment of a national rating system. The proposed framework envisages an institutional model covering a new Kazakhstan Rating Agency as an independent national rating institution alongside a recognition regime for international and other foreign rating agencies, including Standard&Poor’s, Moody’s and Fitch and other agencies recognised by at least five Organisation for Economic Co-operation and Development countries. The Agency would receive powers to recognise, monitor and withdraw recognition of international and foreign agencies and to oversee compliance, including through inspections and supervisory measures, with market-entry requirements such as at least five years’ experience, sufficient own capital, a validated methodology and institutional independence. For the Kazakhstan Rating Agency, minimum authorised and own-capital requirements would be set at the subordinate level, with authorised capital expected to be around KZT 10bn; ownership and governance requirements would include a 10% cap on participation in capital and a board with at least half independent directors. The draft also regulates rating methodologies, requiring rating activity to be conducted only on approved methodologies that are updated at least annually and supported by historical data, and introduces measures to manage conflicts of interest, separate rating from other activities and prohibit the provision of consulting services. All rating agencies would have to publish methodologies, pricing policies, conflicts of interest and historical default-rate data online, while the Kazakhstan Rating Agency would additionally be required to provide the regulator with information on ratings, methodologies and historical statistics and to disclose an annual transparency report covering beneficial ownership and internal control results.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2026-04-15
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan advances draft laws to regulate credit rating agencies and establish Kazakhstan Rating Agency
The Agency for Regulation and Development of the Financial Market of Kazakhstan has submitted draft legislation to Parliament to regulate credit rating agencies, setting independence, transparency and accountability requirements and a national rating system. It would establish the Kazakhstan Rating Agency as an independent national institution, introduce a recognition regime for foreign agencies, and empower the Agency to recognise, monitor and withdraw recognition. The draft also regulates methodologies, conflicts of interest, separation of activities and disclosure, including online publication of methodologies and default data.