South Africa's FSCA Finds S&P Global in Breach of Ratings Rules

South Africa's Financial Sector Conduct Authority (FSCA) broke the news, stating that S&P Global Ratings, a major player in global investment ratings, has breached the country's rules on credit ratings. The FSCA additionally alleged that the global firm violated its own internal policies.

This discovery was made during an on-site supervisory inspection carried out by the FSCA at the end of 2022. The inspection revealed S&P Global Ratings to have secretly withdrawn a credit rating of an unidentified company, failing to inform investors of this significant decision.

In South Africa, credit rating agencies have an obligation to adhere to the rules set by the FSCA. This is to ensure transparency in their operations, and, most importantly, to protect the interests of investors. The undisclosed withdrawal of a company's credit rating by such an influential ratings agency could potentially mislead investors, disrupting the integrity of the investment environment.

The FSCA is now expected to take necessary action against S&P Global Ratings for these transgressions. The details of potential penalties, disciplinary measures, or consequences in regards to these findings are yet to be released.