Kazakhstan’s authorities plan to establish a domestic credit rating agency, with shareholders expected to include the National Bank of Kazakhstan, an international rating agency, and local financial institutions. The announcement was made by Madina Abylkassymova, chair of the Agency for Regulation and Development of the Financial Market (ARDFM).
At present, Kazakhstan does not have its own rating system. Credit ratings for market participants are assigned by the “big three” international agencies, Standard & Poor’s, Moody’s, and Fitch Ratings, as well as by Expert RA and ACRA, which are accredited for prudential regulation purposes.
The ARDFM has developed a draft law on rating activities, which provides for the creation of a national rating system and the regulation of rating agencies. The document was approved by the Mazhilis, the lower house of parliament, in its first reading on April 15.
“It is planned to establish a Kazakh rating agency as an independent institution for national credit assessment. Its shareholders will include the National Bank, an international rating agency, and financial institutions,” Abylkassymova said.
According to her, the participation of the National Bank will help ensure financial stability and build trust among market participants. To safeguard rating independence, new requirements will be introduced for analysts: their remuneration must not depend on clients’ financial performance, and restrictions on affiliations will be imposed, including a ban on holding financial instruments issued by rated entities.
The draft law also sets a cap on any single shareholder’s participation in the agency’s capital at no more than 10%. In addition, at least half of the board of directors must consist of independent members.
The agency’s authorized capital is expected to total approximately $21 million. The new system is intended to simplify access to capital markets for companies, particularly small and medium-sized enterprises.
“This will help reduce borrowing costs, decrease information asymmetry, and improve issuer transparency. For institutional investors such as banks, pension funds, and insurance companies, it will expand investment opportunities,” Abylkassymova said.
In addition to the creation of a national agency, other rating organizations both domestic and foreign, will be allowed to operate in the market. The ARDFM will be granted authority to recognize them, monitor their activities, conduct inspections, and potentially revoke their status.
The legislation establishes qualification requirements for international and foreign rating agencies seeking to enter the market, including:
- at least five years of operational experience;
- sufficient capital levels;
- a verified methodology;
- institutional independence.
Ratings may only be assigned using methodologies approved by the regulator, which must be regularly updated. All agencies will be required to publish their methodologies, pricing policies, and information on potential conflicts of interest.
As previously reported by The Times of Central Asia, S&P Global Ratings confirmed Kazakhstan’s long-term sovereign rating in March while forecasting a slowdown in GDP growth in 2026.
