The Philippine Securities and Exchange Commission has proposed revised rules for credit rating agencies that would strengthen accreditation, governance, independence and disclosure requirements. The framework would apply to ratings for a broader range of instruments, including corporate bonds, commercial paper, structured products, sukuk, covered bonds and sustainability-linked instruments, while aligning local regulation with internationally recognized standards. Credit rating agencies would need minimum capital of PHP 50 million upon accreditation, rising to PHP 70 million after three years, and would face enhanced operational, documentation and staffing requirements. A majority of directors, including the chairperson, would have to be independent, while business development and analytical functions would be fully separated. Lead analysts could serve a rated entity for no more than four consecutive years, followed by a two-year cooling-off period. Agencies would also have to publish annual transparency reports within four months of each fiscal year-end and disclose historical default rates and rating transition matrices. Comments on the draft rules are due by July 23.
2026-07-15Philippine Securities and Exchange Commission
Philippine Securities and Exchange Commission consults on stricter credit rating agency accreditation and governance rules
The Philippine Securities and Exchange Commission is consulting on stricter accreditation, governance and transparency rules for credit rating agencies. The proposals include minimum capital of PHP 50 million rising to PHP 70 million, majority-independent boards, functional separation of commercial and analytical teams, analyst rotation and expanded public disclosures. Comments are due by July 23.