‘Foreign rating agencies may need to set up subsidiaries in Russia instead of branches or representative offices, so their operations could be subject to Russian legislation. It is seen as another attempt by Russia to better control its domestic finances.
The Central Bank of Russia has proposed a bill that would regulate operations of rating agencies in Russia, Kommersant reports.
Moody’s, S&P and Fitch acknowledged the receipt of the draft law but declined to comment.
If the bill becomes law it would be the first regulation of the sort in Russia.
Central to the bill is that the international rating agencies will have to create Russian subsidiaries, which will be Russian legal entities.
Currently the so–called “Big Three” rating agencies, Moody`s, S&P and Fitch, only have representative offices and branches in Russia, which means they are controlled by European and US regulators.’