Address from the Acting Chief Executive of the FSC Mauritius: Credit Ratings in Emerging Markets
The Acting Chief Executive of the FSC Mauritius, Mr P.K. Kuriachen, was invited to make an address during a Forum on Credit Ratings in Emerging Markets organised by the Insurance Institute of Mauritius at Labourdonnais Waterfront Hotel on 15 July 2016.
Mr Kuriachen highlighted that the presence of local rating agencies in Mauritius will play a pivotal role on the relatively nascent and untapped corporate bond market in Mauritius. As a positive development for the capital markets, the FSC Mauritius licensed its first credit rating agency, CARE Ratings Africa in May 2015.
The Acting Chief Executive encouraged bond issuers seeking credit ratings of foreign credit rating agencies to select a credit rating agencies established in a country whose securities market regulatory is a signatory to the International Organization of Securities Commissions (IOSCO) Multilateral Memorandum of Understanding, and who has a regulatory program which embeds the IOSCO principles for credit rating agencies.
He also explained that insurance companies in Mauritius also use credit ratings for calculating their minimum capital requirements with respect to premium ceded to re-insurance for the general insurance business.
The event was marked by the presentation of Dr Roger Sellek from A.M. Best Europe who spoke, inter alia, on the importance of credit ratings in mature and emerging markets and their impact on long term development, guidelines to ratings from the point of view of an insurance company.
The FSC Mauritius welcomed Dr Roger Sellek on 14 July 2016 at the FSC House. The purpose of his visit was to learn on the role of the FSC Mauritius and understand the relevance of credit rating agencies in our local context.