GSE to soon establish credit rating agency for listed firms

The Ghana Stock Exchange will soon finalise the process to establish an investor credit rating agency for players on the stock market. 

The move is to enhance credibility of the market and open up activities of investors to all stakeholders.

Head of Fixed Income Bond Market, Augustine Simons, explained that this is critical to 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 comes on the market to raise funds. So that gives comfort to investors on where they will be putting their money”, he said.

Managing Director of the Ghana Stock Exchange, Ekow Afedzi explained that this is critical to the growth of the market.

According to him, it’s about time certain features are introduced onto the Ghana Stock Exchange to help with its transformation agenda.

“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.

The GSE engaged the media, which is the first in the series of media encounters to give a performance update on its operations.

Source:Myjoyonline