Russia Is Ready to Rein In the Ratings Agencies

The Big Three ratings agencies have hit Russia with a barrage of debt downgrades and warnings as its economy has faltered and sanctions imposed by the West have started to bite. Now Russia is hitting back.

The country’s central bank has drafted legislation that would require foreign-owned ratings agencies to establish local subsidiaries under the bank’s supervision if they want to continue operating in Russia. Standard & Poor’s, Moody’s, and Fitch Ratings now maintain Russian branch offices of their European operations, which the Paris-based European Securities and Markets Authority regulates. That arrangement makes it difficult for Russian officials “to apply supervisory authority,” said the central bank’s press office in a statement.