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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Conduct of Business Module (COB) [VER34/01-20]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

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  • COB 8.3.2

    For the purposes of producing and reviewing Credit RatingsG , a Credit Rating AgencyG must adopt and use rating methodologies and models, including any key rating assumptions, which:

    (a) are rigorous and systematic;
    (b) to the extent possible, result in Credit RatingsG that can be subjected to some form of objective validation based on historical experience;
    (c) are subject to periodic review as appropriate; and
    (d) are made public, including any changes made to such methodologies and models.
    [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]

    • COB 8.3.2 Guidance

      1. A Credit Rating AgencyG will need to establish proper procedures for the regular review of its methodologies and models, including any key rating assumptions used in such methodologies and models, in order to be able to properly assess the Relevant InformationG and prepare credible and high quality Credit RatingsG . Any changes to the methodologies and models should incorporate cumulative experience gained through on-going market surveillance.
      2. Where any material modifications are made to the methodologies or models used by the Credit Rating AgencyG , it should make prior disclosure to the public of such modifications before applying the modified methodologies and models, especially to existing Credit RatingsG .
      3. A Credit Rating AgencyG should assess whether existing methodologies and models for providing a Credit RatingG in respect of structured financial products remain appropriate where the risk characteristics of the assets underlying a structured product change materially.
      [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]