The Paraguayan House of Representatives recently approved the text of legislation, already approved by the country’s Senate, that regulates ratings agencies and replaces Law 1056/97 previously in place for ostensibly the same purpose. The text of the new law states that its purpose is to regulate ratings agencies and the ratings they issue to banking and other financial companies, including insurance companies. Such ratings agencies will be authorized and monitored by the Comision Nacional de Valores, which will maintain a registry of such entities. The new law also notes that “ratings are to be based upon analysis and evaluation performed using quantitative and qualitative fundamentals . . . .”
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