In a statement, it said the latest “enhancements” would strengthen the role, independence and objectivity of such agencies in providing credible credit rating opinions.

It added that the latest move was in line with the broader strategic objectives of the Capital Market Masterplan 3.

SC chairman Awang Adek Hussin said the active and innovative issuances for the Malaysian bond and sukuk market in recent years had increased the need for independent, high quality, timely and reliable assessments to enable investors to make informed investment decisions.

In addition, he said, there was a need to promote better market confidence.

“The revised guidelines emphasise the significant role of credit rating agencies in promoting strong governance and upholding the integrity of their rating process,” Awang Adek said.

He pointed out that effective internal controls and governance were of paramount importance to safeguard the integrity of the rating processes and assessments to meet stakeholders’ expectations.

The key amendments in the guidelines included additional measures in relation to board governance and independence as well as fit and proper requirements on the controller, compliance officer and senior management of the agencies and their holding companies.

Also incorporated into the guidelines were changes in the SC’s regulatory filings and processes as well as the adoption of regulatory forms for greater operational efficiency.