According to the managers of the local bourse, the domestic credit rating agency, which will be created by the end of the year, is to rate the issurances of investors in the market.
Speaking at the Managing Directors Breakfast meeting with the media organized by the Ghana Stock Exchange, Head of the Fixed Income Bond Market, Augustine Simons, noted that the establishment of the agency is a key instrument for the growth of the market.
“To help us develop our corporate market, there’s the need for us to have domestic credit rating agency to help in rating issuers that come on the market to raise funds. So that gives comfort to investors on where they will be putting their money”, he said.
He further noted that the creation of the rating agency will also help private companies assess the creditworthiness of bonds and the companies or governments that issue them.
Expatiating further on the importance of creating the investor credit rating agency, Managing Director of the Ghana Stock Exchange, Ekow Afedzie explained that, the time is ripe to introduce key elements within the market to aid growth and allow institutional and individual investors to rely on such rating agencies and their in-depth research to make investment decisions.
“There are certain features that will make the bond market more credible. One of them is the credit rating agency because it will help the investor to know the credit rating of that entity before making a decision when it comes to corporate bond or whatever the agency will say could serve as a guide to investors,” he noted.