TORONTO — DBRS Ltd., Fitch Inc., Moody’s Canada Inc. and Standard & Poor’s Rating Services (Canada) have all been granted designated rating organization status under Canadian securities laws, regulators said Monday.
The designation is required under new rules that came into force April 20 establishing a regulatory framework for the oversight of credit rating organizations, according to the Canadian Securities Administrators, the umbrella group for provincial and territorial securities regulators.
Under the new rules, such credit rating organizations have to adhere to a code of conduct that includes rules concerning conflicts of interest, governance, conduct and required filings.
The rules were designed to bring Canadian standards in line with international requirements, specifically those in the European Union, so European market participants can rely on Canadian credit ratings, according to the CSA.
The designated ratings organizations will have a six-month transition period to fully implement all requirements set out the new NI 25-101 regulations.
Once they have done so, the CSA expect to issue and announce amended and restated designation orders.
The enabling legislation required to make NI 25-101 a rule in Saskatchewan will be proclaimed in Saskatchewan later this year.