STAKEHOLDERS EMPHASIZE ROLE OF CREDIT RATING AGENCIES AS SEC CONSIDERS ACCOUNTABILITY MEASURES
Key Details:
1. Role of Credit Rating Agencies (CRAs): Stakeholders in Nigeria’s financial market have highlighted the importance of CRAs in promoting transparency, reducing information asymmetry, and enhancing investor confidence. These agencies provide critical financial assessments that help both domestic and international investors make informed decisions, especially in markets where reliable financial information may be scarce.
2. SEC’s Regulatory Commitment: The Securities and Exchange Commission (SEC) is committed to ensuring that credit rating agencies operate under a fair and accurate regulatory environment. SEC Director-General, Dr. Emomotimi Agama, emphasized the need for credit rating agencies to maintain integrity and accountability while supporting businesses’ ability to raise funds in both local and international markets.
3. Challenges in Nigeria's Market: CRAs are essential for risk benchmarking, especially in an economy like Nigeria, where different sectors face varying levels of risk due to economic volatility and global factors. Proper credit ratings provide a clearer understanding of these risks, aiding in the growth of the economy.
4. Expert Insights: Christian Ruehmer, CEO of Q-Lana, noted the transformative role of technology in the financial sector and emphasized that credit ratings should support, not replace, market functions. Abimbola Adeseyoju, Managing Director of DataPro, pointed out that CRAs should focus on promoting economic growth by empowering SMEs, corporates, and other entities to build a sustainable and wealth-creating society.
5. Webinar Context: The discussion took place during a webinar organized by DataPro, with the theme focused on the importance of credit rating instruments in Nigeria and Africa. The event aimed to promote the value propositions of CRAs in fostering economic development across the continent.
Key Details:
1. Role of Credit Rating Agencies (CRAs): Stakeholders in Nigeria’s financial market have highlighted the importance of CRAs in promoting transparency, reducing information asymmetry, and enhancing investor confidence. These agencies provide critical financial assessments that help both domestic and international investors make informed decisions, especially in markets where reliable financial information may be scarce.
2. SEC’s Regulatory Commitment: The Securities and Exchange Commission (SEC) is committed to ensuring that credit rating agencies operate under a fair and accurate regulatory environment. SEC Director-General, Dr. Emomotimi Agama, emphasized the need for credit rating agencies to maintain integrity and accountability while supporting businesses’ ability to raise funds in both local and international markets.
3. Challenges in Nigeria's Market: CRAs are essential for risk benchmarking, especially in an economy like Nigeria, where different sectors face varying levels of risk due to economic volatility and global factors. Proper credit ratings provide a clearer understanding of these risks, aiding in the growth of the economy.
4. Expert Insights: Christian Ruehmer, CEO of Q-Lana, noted the transformative role of technology in the financial sector and emphasized that credit ratings should support, not replace, market functions. Abimbola Adeseyoju, Managing Director of DataPro, pointed out that CRAs should focus on promoting economic growth by empowering SMEs, corporates, and other entities to build a sustainable and wealth-creating society.
5. Webinar Context: The discussion took place during a webinar organized by DataPro, with the theme focused on the importance of credit rating instruments in Nigeria and Africa. The event aimed to promote the value propositions of CRAs in fostering economic development across the continent.