Credit rating agencies

Credit Rating Agencies (CRAs) are licensed and governed under the Securities and Futures Act 2001 (SFA) , and its subsidiary legislation, including the regulations notices guidelines  and circulars  issued under the SFA

When is licensing required?

A company that disseminates or distributes an opinion about the creditworthiness of a rating target through the use of a defined ranking system of rating categories is conducting credit rating activities, and would need to be licensed to do so.   

Individuals who are involved in the preparation of a credit rating in Singapore are required to be appointed as 

The activities involved in the preparation of a credit rating include:

  • analysing information or data;
  • formulating or drafting an opinion on the creditworthiness of a rating target;
  • evaluating or approving a credit rating;
  • monitoring or reviewing a credit rating which has been issued;
  • formulating or drafting credit rating methodologies or models; and
  • evaluating or approving credit rating methodologies or models.

If the preparation of credit ratings is carried out wholly outside Singapore, the company and its employees do not need to be licensed even if the credit ratings are intended for dissemination in Singapore.

Details on how to apply for a corporate licence and be registered as an appointed representative can be found on the Capital Markets Services (CMS) Licence page and Appointing a Representative for CMS Licensees or Exempt Financial Institutions page respectively.

For more information, please refer to the FAQs on Credit Rating Agencies.


What are the business conduct requirements?

A credit rating agency is required to put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business, including an independent compliance function. It must also adhere to conduct requirements set out in the Code of Conduct for Credit Rating Agencies.


More information on the applicable regulatory requirements can be found in the Securities and Futures (Licensing and Conduct of Business) Regulations (SF(LCB)R) , and the applicable Notices and Guidelines .