Policy Frame work African Peer Review Mechanism Support to African Union Member States in the Field of Credit rating Agencies

POLICY FRAME WORK BY THE AFRICAN PEER REVIEW MECHANISMS TO SUPPORT AFRICAN UNION MEMBER STATES IN THE FIELD OF CREDIT RATING AGENCIES.

The purpose of the Framework is to provide policy direction on strategic and operational mechanisms to States creditworthiness. The mechanisms provide tools for supporting Member States in the pre-rating preparatory phase, facilitate a systematic credit rating assessment exercise, manage the post-rating appeals and the implementation of admissible recommendations to promote continental policy convergence.

To achieve this purpose, the objectives of this policy framework are;

To sensitize various sectors on the impact and implications of the sovereign credit ratings on both domestic rated institutions and instruments.
To support Member States in undertaking periodic financial, political, economic and social impact analysis.
To prepare the liaison team for Member States to make available reliable data for use by CRAs to avoid estimations that prejudice Member States credit risk assessments.
To support Member States’ analysis and evaluation of the ratings produced by CRA’s and their impact through the generation of independent opinions.
To facilitate the articulation and establishment of the architecture for managing and regulating CRAs through existing institutions.
To establish a network of experts and practitioners for improved sharing of best practices in the field of international sovereign credit ratings.
To create an operating environment that promotes competition, efficiency, accuracy and transparency. h. Harmonization of the regulation of the credit rating industry on the continent.
To provide technical and operational support to governments in the implementation of admissible recommendations.
To provide technical support to Member States in the establishment of a regulatory environment to license and supervise CRAs operating in that Member State jurisdiction.