FRA grants Beltone Capital license to launch country’s 2nd credit rating agency

Cairo – October 22, 2024: Egypt will soon have its second ever credit rating agency as the Financial Regulatory Authority (FRA) has announced that it granted Beltone Capital the necessary approvals to obtain a credit rating license.

With this approval, Beltone, in collaboration with its partner CRIF — an international leader in credit and business information analytics — will establish Egypt’s second credit rating agency.

The two signed a framework agreement in October 2023, aiming to develop expertise in ESG scoring and credit rating data science, focusing on both the Egyptian market and the broader MENA region. The ESG score quantifies an organization’s environmental, social, and governance efforts through numerical or letter ratings.

Currently, Middle East Rating & Investor Service (MERIS) stands as Egypt's sole credit rating agency. MERIS is a joint venture between Moody’s and Finance and Banking Consultants International (FinBi).

Beltone and CRIF are not the only companies competing to enter the market, with two other alliances having applied last year for license - state-backed credit bureau I-Score and S&P Global Ratings, alongside MGM Financial & Banking Consultants and India's Infomerics Ratings.

Credit rating agencies play a vital role in evaluating the creditworthiness of borrowers, including corporations and governments. They assess various factors, including financial health and economic conditions, and assign ratings that inform investors of potential risks associated with debt securities.