Resolution Reforming Article 35 of the Standard on Risk Rating Agencies

Page 1 of 2 Resolution No. CD-SIBOIF-1053-3-ABRI24-2018 Dated April 24, 2018

NORM REFORMING ARTICLE 35 OF THE STANDARD ON RISK RATING AGENCIES

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I That Title IX, Single Chapter of Law No. 587, Capital Markets Law, empowers the Board of Directors to regulate Risk Rating Agencies in the following aspects: the type of activities they may perform, share capital, the provision of rating services by entities established abroad, as well as their sanctioning regime, among others;

II That Article 10, Number 7 of Law 316, Law of the Superintendence of Banks and Other Financial Institutions, and its reforms, states that it corresponds to the Board of Directors to approve regulations to govern "all matters related to risk rating agencies";

III That pursuant to the above consideration, it is appropriate to reform Article 35 of the Standard on Risk Rating Agencies, contained in Resolution CD-SIBOIF-579-2-ABR1-2009, published in La Gaceta No. 89, of May 15, 2009; in order to update the list of internationally recognized risk rating agencies.

In exercise of its powers,

HAS ISSUED

The following:

Resolution No. CD-SIBOIF-1053-3-ABRI24-2018 NORM REFORMING ARTICLE 35 OF THE STANDARD ON RISK RATING AGENCIES

FIRST: Article 35 of the Standard on Risk Rating Agencies, contained in Resolution CD-SIBOIF-579-2-ABR1-2009, published in La Gaceta No. 89, of May 15, 2009, is hereby amended, which shall read as follows:

"Art. 35. Foreign and Internationally Recognized Rating Agencies.- In accordance with what is established in Article 170 of the Capital Markets Law, the following Rating Agencies may also offer the risk rating service in the country, by requesting their inscription in the Register:

Page 2 of 2 a Foreign Rating Agencies that are registered with the securities market regulatory body of their respective country. For these purposes, the Agencies must comply with the requirements established in Annex 2, which is an integral part of this standard. b Internationally Recognized Rating Agencies. For the purposes of this standard, these agencies are the following: • Fitch, Inc • Moody’s Investors Service, Inc • Standard & Poor’s • Dominion Bond Rating Service Limited • Kroll Bond Rating Agency, Inc

For registration and authorization to operate in the country, they must send a request to the Superintendent signed by a duly accredited legal representative. The Superintendent shall have a period of 90 days to resolve on the request.

Likewise, the provisions of Chapters IV, V, VI, VII, VIII, and IX of this standard are applicable to this type of agency in its conduct within the country.

The Superintendent may update the list referred to in subsection b of this article, when new internationally recognized risk rating agencies are determined; which it shall inform the Board of Directors of the Superintendence prior to the notification made via circular to financial institutions."

SECOND: This standard shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Gazette. (f) S. Rosales C. (f) M. Díaz O. (f) Gabriel Pasos Lacayo (f) Fausto Reyes B. (f) illegible (Silvio Moises Casco Marenco) (f) U. Cerna B. Secretary.

URIEL CERNA BARQUERO Secretary of the Board of Directors SIBOIF