Libya’s first local credit rating agency has been established 

In a significant shift towards developing the local financial sector and attracting foreign investment, it was announced in Libya that the SANAD Credit Rating Agency (SCRA) has become the first licensed local consortium rating agency in the country’s history, as reported by Libya Eye on July 22nd. 

The agency was officially licensed by the Libyan Capital Market Authority under Resolution No. 22 of 2026, filling a structural gap that the Libyan financial market has long suffered from, as Libyan institutions, such as banks, companies, or government entities, have remained isolated from the ratings of major international rating agencies. SANAD started its first practical steps with the issuing of its first package of credit ratings, which covered all 27 major banks in Libya. Valuations are expected to expand to other non-banking sectors and institutions later. 

In Libya’s past, the absence of independent rating agencies created difficulty toward foreign investment and lending due to the assumed high levels of risk which led to harsh financial conditions, referred to as the “frontier premium,” regardless of the institution’s solvency or real ability to repay. A local agency would provide objective assessments based on accurate data as a way to fill this gap. 

SANAD Agency’s activities will not only be limited to issuing credit ratings, but the license will allow it to provide a new integrated system with three key areas. The first is evaluation and rating, which determines the credit scores of institutions from the highest to the lowest levels. The second covers research and data, which focuses on the collection of market research and reliable data as a way to serve both investors and decision-makers. Lastly the third section tackles both training and consulting services that will serve as a way to help companies raise their financial efficiency to prepare for the ranking, train local talent and develop their financial analysis skills.

The new system aims to establish new rules for transparency and governance in Libya, which will continue to strengthen confidence in international markets and serve as a key player in the goal of rebuilding the country’s investment environment. 

Libya Eye, Maghrebi.org.