The legal capital level of a credit rating agency for its credit rating activities is VND fifteen (15) billion is the content prescribed at the Decree No. 88/2014/ND-CP dated September 26, 2014 of the Government on credit rating services. The legal capital level is exclusive of legal capital level for other business lines a credit rating agency may conduct in accordance with law.
Also in accordance with this Decree, from November 15, 2014, limited liability companies; joint-stock companies and partnerships which having an enterprise registration certificate; having a paid-up charter capital at least equal; having a general director or director; having at least five (5) employees; who meet the criteria and conditions for members of credit rating councils; having at least ten (10) employees who meet the criteria and conditions for analysts; having tentative business plans; being in line with the master plan on development of credit rating services shall be granted of business eligibility certificates.
Besides, the Decree also prescribes some prohibited acts in credit rating activities such as modifying, erasing or forging documents in dossiers for which business eligibility certificates have been granted; modifying, erasing or forging business eligibility certificates; leasing or transferring business eligibility certificates; providing credit rating services without business eligibility certificates; demanding or receiving money or any benefits from rated organizations other than credit rating service charges agreed upon in signed credit rating contracts; using results of credit rating and issuance of debt instruments by rated organizations as a basis for determining credit rating service charges; colluding with or contacting rated organizations to falsify credit rating results… In particular, organizations and individuals may not use state budget funds to contribute capital to establish credit rating agencies.
This Decree takes effect on November 15, 2014.
