Housing Development Agency Act, 2008
R 385
Credit Rating Services Act, 2012 (Act No. 24 of 2012)Board NoticesBoard Notice 228 of 2013Part IV : Quality and Integrity of Credit Ratings8. Monitoring, surveillance and updating |
| (1) | A credit rating agency must ensure that adequate personnel and financial resources are allocated to monitoring, surveilling and updating its ratings; except for ratings that clearly indicate they do not entail ongoing monitoring and surveillance. |
| (2) | Once a rating which requires ongoing monitoring and surveillance is published the credit rating agency must monitor and surveil the rating on an ongoing basis and update the rating by— |
| (a) | regularly reviewing the rated entity's creditworthiness; |
| (b) | initiating a review of the status of the rating upon becoming aware of any information that might reasonably be expected to result in a rating action, including termination of a rating; and |
| (c) | updating on a timely basis the rating, as appropriate, based on the results of such review. |
| (3) | A credit rating agency must ensure that subsequent monitoring and surveillance incorporates all cumulative experience obtained. The credit rating agency must apply changes in ratings criteria and assumptions where appropriate to initial ratings, existing ratings and subsequent ratings. |
| (4) | If a credit rating agency uses separate analytical teams for determining initial ratings and for subsequent monitoring and surveillance of structured finance instruments, each team must have the requisite level of expertise and resources to perform their respective functions in a timely manner. |
| (5) | Where a credit rating agency makes its ratings available to the public, the credit rating agency must publicly announce if it discontinues rating a rated entity, security or financial instrument and give reasons for the decision. |
| (6) | Where a credit rating agency's ratings are provided only to its subscribers, the credit rating agency must announce to its subscribers if it discontinues rating a rated entity, security or financial instrument. |
| (7) | In the circumstances referred to in either sub-paragraph (5) or (6), future continuing publications of the discontinued rating must indicate the date the rating was last updated and the fact that the rating is discontinued. |
| (8) | A credit rating agency must establish internal arrangements to monitor the impact of changes in macroeconomic or financial market conditions on credit ratings. |
