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Russia’s national rating agency may consider entering European market in 2018-2019

July 24, 2015, 19:17 UTC+3 MOSCOW

The new rating agency may pay off within 3-5 years

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© Mikhail Japaridze/TASS

MOSCOW, July 24. /TASS/. Russia’s national rating agency may consider its entering the European market already in 2018-2019, one of participants of the meeting on the issue of creating the agency at the Central Bank on Friday told TASS.

"The agency may go to Europe approximately in 2018-2019," he said, adding though that its development strategy has not been finalized yet.

He also said the requirement to the agency’s capital structure where share of one shareholder should not exceed 5%, coincides with those of the European Securities and Markets Authority (ESMA) which regulates European rating agencies.

Earlier on Friday first vice president of Gazprombank and the head of the project on creation of the agency Yekaterina Trofimova said the new rating agency, which is being created now, may pay off within 3-5 years. "Depending on the model, scenario, this particular project is supposed to pay off in the range of 3-5 years depending on how fast the demand for services grows, which tactics is chosen by other rating agencies, both international and national, which pricing policy the agency has," she said. Trofimova said "a classical model" of the rating agency will be applied, meaning revenues generation will be at the expense of fees collected from the agency’s clients. She also said the participants of the meeting at the Central Bank on Friday supported the project. "As of now it’s already clear that the necessary pool of investors is being formed though virtually applications will start to be received only next week. I suppose applications will be received till August 28," she said. In order "to minimize the conflict of interests investors are offered a pulverized ownership structure, with shares not exceeding 4.99%, meaning with shares less than 5%," Trofimova said, adding that "this will allow control of process of corporate management, with investors coming from various segments of the economy with most qualitative standing."

The national rating agency may start operations already in the fourth quarter of 2015. Its capital is planned at 3 bln rubles ($51.5 mln) with equal distribution of shares between investors amounting to up to 5%. Preliminary subscription to shares will be held by the end of August 2015. Banks, insurance and asset management companies as well as issuers, may become investors.

As TASS reported earlier the number of shareholders of the national rating agency may exceed 20. Also, according to one of the options of creating it, if the Bank of Russia initially is not able to attract the sufficient amount of "powerful" shareholders to the agency the regulator will enter its capital itself for 2 years, which may be later followed by the agency’s IPO.

Currently, a number of local rating agencies are operating in Russia - RusRating, Expert-RA Rating Agency, the National Rating Agency, AC&M and some others.

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