IOSCO Code of Conduct — Compliance Statement

SANAD's formal statement of adherence to the IOSCO Code of Conduct Fundamentals for Credit Rating Agencies (as revised, 2015).

SANAD Credit Rating Agency, licensed and supervised by the Libyan Capital Market Authority under Board Resolution 38/2024 as amended, adheres to the IOSCO Code of Conduct Fundamentals for Credit Rating Agencies. This statement sets out how each section of the Code is implemented in the systems and procedures SANAD actually operates, and is updated whenever those systems change.

A — Quality and integrity of the rating process

Ratings are determined under published, versioned methodologies applying rigorous and systematic scorecards; the full methodology library, the national long-term and short-term scales, and every amendment's version history are public.
Every rating action passes a four-eyes review by a reviewer uninvolved in its preparation, includes a certified actuarial report (LCMA Board Decision 5/2026), and is published with a components trail disclosing each analytical layer — standalone profile, seasoning, information-sufficiency caps, and support adjustments.
Where information is insufficient to support a reliable opinion, SANAD refrains from rating or applies published information-sufficiency caps and negative watch — never silence.
Rating performance is disclosed: annual transition statistics and default rates by category are published and update automatically as history accrues.

B — Independence and management of conflicts of interest

Rating decisions are reserved to the rating committee; no commercial consideration enters the analytical process. Analysts are not compensated on rating outcomes and do not participate in fee discussions.
A published conflicts-of-interest policy governs ancillary services with operational separation; the provision of any ancillary service to a rated entity is disclosed in that entity's rating actions, and fee concentrations above the statutory threshold are disclosed by name.
Unsolicited ratings and preliminary public-information exercises are designated as such on every surface, with the means of information access disclosed.

C — Responsibilities to the investing public and issuers

Rating actions are published immediately upon issuance with a press release stating the action, both scales, outlook and watch separately, key factors, sensitivities and the regulatory disclosure table; issuers are notified with the information underlying the action.
Update and withdrawal dates and reasons are disclosed; historical actions remain permanently accessible, and corrections are issued through a public errata register — the record is never silently rewritten.
Non-public information received in the rating process is used solely for rating purposes under confidentiality controls and access-audited systems.

D — Governance, risk management and disclosure of this Code

SANAD has adopted a Code of Conduct based on the IOSCO Fundamentals, maintains a compliance function with statutory violation-notice duties, retains records for the statutory period with backups, and reports annually to the Libyan Capital Market Authority through the transparency report.
Registrable positions — including the chief credit analyst, the actuarial researcher and the internal auditor — are registered with the Authority, with statutory training and dismissal-notice protections.
Deviations from the IOSCO Fundamentals: none are currently claimed. Should any provision become impracticable in the Libyan market context, this statement will disclose the deviation and the reason (comply or explain).

Related references on this site: Methodology Library · Rating Performance · Regulatory Disclosures · Correction Notices

This statement was last updated in July 2026 and is reviewed annually as part of the transparency-report cycle.

A — Quality and integrity of the rating process

Ratings are determined under published, versioned methodologies applying rigorous and systematic scorecards; the full methodology library, the national long-term and short-term scales, and every amendment's version history are public.

Every rating action passes a four-eyes review by a reviewer uninvolved in its preparation, includes a certified actuarial report (LCMA Board Decision 5/2026), and is published with a components trail disclosing each analytical layer — standalone profile, seasoning, information-sufficiency caps, and support adjustments.

Where information is insufficient to support a reliable opinion, SANAD refrains from rating or applies published information-sufficiency caps and negative watch — never silence.

Rating performance is disclosed: annual transition statistics and default rates by category are published and update automatically as history accrues.

B — Independence and management of conflicts of interest

Rating decisions are reserved to the rating committee; no commercial consideration enters the analytical process. Analysts are not compensated on rating outcomes and do not participate in fee discussions.

A published conflicts-of-interest policy governs ancillary services with operational separation; the provision of any ancillary service to a rated entity is disclosed in that entity's rating actions, and fee concentrations above the statutory threshold are disclosed by name.

Unsolicited ratings and preliminary public-information exercises are designated as such on every surface, with the means of information access disclosed.

C — Responsibilities to the investing public and issuers

Rating actions are published immediately upon issuance with a press release stating the action, both scales, outlook and watch separately, key factors, sensitivities and the regulatory disclosure table; issuers are notified with the information underlying the action.

Update and withdrawal dates and reasons are disclosed; historical actions remain permanently accessible, and corrections are issued through a public errata register — the record is never silently rewritten.

Non-public information received in the rating process is used solely for rating purposes under confidentiality controls and access-audited systems.

D — Governance, risk management and disclosure of this Code

SANAD has adopted a Code of Conduct based on the IOSCO Fundamentals, maintains a compliance function with statutory violation-notice duties, retains records for the statutory period with backups, and reports annually to the Libyan Capital Market Authority through the transparency report.

Registrable positions — including the chief credit analyst, the actuarial researcher and the internal auditor — are registered with the Authority, with statutory training and dismissal-notice protections.

Deviations from the IOSCO Fundamentals: none are currently claimed. Should any provision become impracticable in the Libyan market context, this statement will disclose the deviation and the reason (comply or explain).