Gamal Moharram, founder of the Egyptian Factoring Federation, will cooperate with an international financial institution to establish a new company that will apply to obtain a licence for credit rating of securities, sources revealed. The sources told Daily News Egypt that the consortium was awaiting the announcement of the licence criteria, explaining that there is interest from several other investors to obtain the licence. Last Tuesday, the Board of Directors of the FRA approved criteria for granting a licence for credit rating of securities. He explained that the licensing criteria aims to achieve transparency, as the selection criteria include all the details of the comparison between the applicants. He added that the credit rating agencies play a vital role in the stock markets, and contribute to the efficient capital allocation to serve investment opportunities according to their return and risk, because they evaluate and classify the quality of the various securities traded in the financial markets.

Source: Daily News Egypt August 24, 2023 06:42 UTC