Article 20. The list of conflicts of interest in which the assignment of a rating is prohibited by the Law of the Republic of Kazakhstan On Credit Rating Activities
1. A credit rating agency does not have the right to assign a rating or a rating forecast, and also immediately publishes information about the impact or potential impact on the assigned rating or rating forecast in the following circumstances:
1) the rated person is a person who has a significant impact on the activities of a credit rating agency;
2) a person associated with a person or group of persons having a significant influence on a credit rating agency, or being affiliated with them, exercises control over the activities of the rated person or has a significant influence on such a rated person;
3) a credit rating agency is a person exercising control over the activities of a rated entity or exerting significant influence on it;
4) the credit rating agency, senior staff or rating analysts involved in the preparation of the rating and (or) the forecast for the rating of the rated person, as well as their close relatives, spouses, parents and children of the spouse (spouse) directly or indirectly own financial instruments or other assets of the rated person;
5) the members of the rating committee are close relatives, the spouse of the employee, as well as close relatives of the spouse of the employee of the rated person or the person exercising control over him or exerting significant influence on him;
6) a shareholder of a credit rating agency who owns ten or more percent of the total number of outstanding shares of a credit rating agency, or a person who directly or indirectly manages ten or more percent of the total number of outstanding shares of a credit rating agency:
owns ten or more percent of the votes attributable to the voting shares constituting the authorized capital of the rated entity, or has another property interest in the rated entity;
is a member of the management bodies of the rated entity or persons exercising control over it or exerting significant influence on it.;
7) rating analysts and senior staff of a credit rating agency are members of the management bodies of the rated entity or persons exercising control over it or exerting significant influence on it, or are associated with an employment relationship with the rated entity or persons exercising control over it or exerting significant influence on it;
8) the rated person is a creditor of a credit rating agency in the amount of ten percent or more of the book value of the credit rating agency's assets or a person exercising control over the creditor or exerting significant influence on it.
2. The credit rating agency is obliged to identify the occurrence of the circumstances specified in paragraph 1 of this article.
3. Upon discovery of the circumstances specified in paragraph 1 of this article and their publication, the credit rating agency determines whether there are grounds for revising the existing rating or rating forecast, and also takes appropriate actions with respect to the rating or rating forecast, if there are such grounds, in accordance with the procedure provided for in the internal documents of the credit rating agency.
4. The restrictions specified in paragraph 1 of this article do not apply to deposits from second-tier banks, diversified collective investment instruments, and ownership of other financial instruments that do not enable the credit rating agency or its employees to influence the activities of financial institutions offering these financial instruments.
The credit rating agency ensures the diversification of financial assets by placing assets in deposits of second-tier banks, diversified collective investment instruments, financial instruments and other property in such a way that the maximum share of their investment does not exceed ten percent of the total volume of financial assets in deposits of one second-tier bank and (or) the issuer of financial instruments, and (or) of one management company.
5. Employees of a credit rating agency are prohibited from directly or indirectly making recommendations to rated persons and underwriters of the rated person regarding their activities that may affect the rating level.
The Law of the Republic of Kazakhstan on Credit Rating Activities
On credit rating activities, the Law of the Republic of Kazakhstan dated July 23, 2026 No. 351-VIII SAM.
President
Republic of Kazakhstan
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