ESMA LIBRARY

The ESMA Library contains all ESMA documents. Please use the search and filter options to find specific documents.
216
DOCUMENTS

REFINE YOUR SEARCH

Sections

Type of document

Your filters
ITMG X Credit Rating Agencies X
Reset all filters
Date Ref. Title Section Type Download Info Summary Related Documents Translated versions
30/07/2013 2013/720 ET Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
101.35 KB
Suunised ja soovitused Reitinguagentuure käsitleva määruse reguleerimisala käsitlevad suunised ja soovitused
30/07/2013 2013/720 EL Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
143.76 KB
Κατευθυντήριες γραμμές και συστάσεις Κατευθυντήριες γραμμές και συστάσεις σχετικά με το πεδίο εφαρμογής του κανονισμού
30/07/2013 2013/720 FR Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
108.46 KB
Orientations et recommandations Orientations et recommandations sur le champ d’application du règlement sur les agences de notation de crédit
30/07/2013 2013/720 IT Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
100.65 KB
Orientamenti e raccomandazioni Orientamenti e raccomandazioni sull’ambito di applicazione del regolamento CRA
30/07/2013 2013/720 LV Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
135.74 KB
Pamatnostādnes un ieteikumi Pamatnostādnes un ieteikumi par KA regulas darbības jomu
30/07/2013 2013/720 NL Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
101.1 KB
Richtsnoeren en aanbevelingen Richtsnoeren en aanbevelingen met betrekking tot het toepassingsgebied van de CRA-
30/07/2013 2013/720 HU Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
142.12 KB
Iránymutatások és ajánlások Iránymutatások és ajánlások a hitelminősítő intézetekről szóló rendelet hatályáról
30/07/2013 2013/720 LT Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
137.57 KB
Gairės ir rekomendacijos KRA reglamento taikymo srities gairės ir rekomendacijos
30/07/2013 2013/720 FI Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
100.69 KB
Ohjeita ja suosituksia Luottoluokituslaitoksista annetun asetuksen soveltamisalaa koskevia ohjeita ja suosituksia
30/07/2013 2013/720 MT Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
142.8 KB
Linji Gwida u Rakkomandazzjonijiet Linji Gwida u Rakkomandazzjonijiet dwar l-Ambitu tar-Regolament CRA
30/07/2013 2013/720 PL Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
145.4 KB
Wytyczne i zalecenia Wytyczne i zalecenia dotyczące zakresu rozporządzenia w sprawie agencji ratingowych
30/07/2013 2013/720 PT Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
102.92 KB
Orientações e recomendações Orientações e recomendações relativas ao âmbito de aplicação do Regulamento relativo às agências de notação de risco (Regulamento ANR)
30/07/2013 2013/720 RO Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
142.73 KB
Orientări şi recomandări Orientări şi recomandări privind domeniul de aplicare al Regulamentului ARC
30/07/2013 2013/720 SK Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
151.15 KB
Usmernenia a odporúčania Usmernenia a odporúčania k rozsahu nariadenia o ratingových agentúrach
30/07/2013 2013/720 SL Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
135.88 KB
Smernice in priporočila Smernice in priporočila o področju uporabe uredbe CRA
30/07/2013 2013/720 SV Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
99.69 KB
Riktlinjer och rekommendationer Riktlinjer och rekommendationer till förordningen om kreditvärderingsinstitut
30/07/2013 2013/720 HR Guidelines and Recommendations on the Scope of the CRA Regulation , Guidelines & Recommendations PDF
137.57 KB
Smjernice i preporuke Smjernice i preporuke o djelokrugu CRA Uredbe
21/11/2013 2013/1703 Technical Advice on the feasibility of a network of small and medium-sized CRAs Technical Advice PDF
601.05 KB
The European Securities and Markets Authority (ESMA) has finalised its Technical Advice to the European Commission on the feasibility of a network of small and medium sized credit rating agencies in order to increase competition in the market. The technical advice provides quantitative and qualitative information on small and medium-sized CRAs in the EU, based on the analysis of the periodic reporting obligations of CRAs to ESMA via the central repository CEREP. It also covers some information regarding possible barriers to entry for companies that wish to conduct rating activity in the EU. Contents The main findings of the advice are: • The 22 registered CRAs are established in 11 EU Member States; • None of the small and medium-sized CRAs cover the whole range of the five rating classes considered (corporates (non-financial), financials, insurance, sovereign and public finance, and structured finance). Whilst DBRS and BCRA cover four and three classes respectively, all the remaining small and medium-sized CRAs cover one or two rating classes only. This contrasts with Fitch, Moody’s and S&P that issue ratings for all five possible rating classes; • Small and medium-sized CRAs are mainly active in issuing corporate ratings. Within this rating type, four small and medium-sized CRAs issue a relatively high number of corporate ratings (CERVED and ICAP) or financial and insurance ratings (GBB and AM Best); • Only 6 of the small and medium-sized CRAs provide sovereign ratings (BCRA, Capital Intelligence, DBRS, European Rating, Feri Euro Rating (Feri) and Japan Credit Rating Agency (JCR)), whilst only one (DBRS) issues structured finance ratings; • As of end 2012 the majority of small and medium-sized CRAs issued solicited ratings only, whilst eight issued unsolicited ratings only. Three small and medium-sized CRAs (DBRS, JCR, and Scope) issued both solicited and unsolicited ratings, as was the case also for Fitch, Moody’s and S&P; • As regards geographical coverage of the small and medium-sized CRAs 6 out of 19 (AM Best, Capital Intelligence, Creditreform, DBRS, JCR and Scope) have a coverage that goes beyond one Member State when referring to corporate ratings. As regards the sovereign ratings type, three of the small and medium-sized CRAs cover more than one Member State (Capital Intelligence, Feri and JCR). In both of these ratings types, Fitch, Moody’s and S&P’s rating activities cover all Member States of the EU; • In 2013, 96% of the supervisory fees were paid by S&P, Moody’s, and Fitch, while their turnover from rating and ancillary services was equal to 88% of the total turnover of the 20 registered and certified CRAs in 2012: and • As of July 2013, 14 out of 19 small and medium-sized CRAs have been granted at least one of the regulatory exemptions provided for in the CRA Regulation. Finally, and with reference to the current situation in the segment of small and medium-sized CRAs, ESMA is not aware of any private networks of small and medium-sized CRAs currently in place.
02/12/2013 2013/1775 Sovereign ratings investigation- ESMA’s assessment of governance, conflicts of interest, resourcing adequacy and confidentiality controls Final Report PDF
302.99 KB
This report summarises the findings of the European Securities and Markets Authority’s (ESMA) general investigation into sovereign credit ratings issued by Fitch Ratings, Moody’s Investors Service and Standard & Poor’s which took place between February and October 2013, as indicated in its Credit Rating Agencies (CRAs) 2013 Supervision and Policy Work Plan. In this report ESMA describes the observed deficiencies and main concerns while also identifying a number of good practices in the following areas: • the role of senior management and other non-rating functions in the rating process and the actual or potential conflicts of interest which could arise; • the actual or potential conflicts of interests generated by the involvement of sovereign analysts in research and publication activities; • confidentiality of sovereign rating information and controls in place prior to publication of ratings (including IT and access controls to confidential information); • timing of publication of sovereign ratings, including timely disclosure of rating changes; • monitoring of the adequacy and expertise of resources dedicated to sovereign ratings; • preparation of rating committees; and • definitions of roles and responsibilities among different analytical functions. ESMA’s investigation revealed shortcomings in the sovereign ratings process which could pose risks to the quality, independence and integrity of the ratings and of the rating process. As of the date of this document, ESMA has not determined whether any of the observations made in this report constitute serious indications of the possible existence of facts liable to constitute one or more infringements of the CRA Regulation.
02/12/2013 2013/1790 ESMA identifies deficiencies in CRAs sovereign ratings processes Press Release PDF
118.75 KB
ESMA identifies deficiencies in CRAs sovereign ratings processes The European Securities and Markets Authority (ESMA) has published a Report identifying a number of deficiencies in the processes for producing and issuing sovereign ratings at the three largest credit rating agencies (CRAs), Fitch Ratings, Moody’s Investors Service and Standard & Poor’s. The Report follows an investigation carried out by ESMA into the sovereign rating processes at the three CRAs, between February and October 2013. The investigation was prompted by concerns about potential conflicts of interests, the impact of sovereign ratings on other types of ratings, CRAs’ capacity to cope with the number of rating actions during a period of high volatility, the use of bulk rating actions, and issues around the confidentiality and timing of rating actions. The investigation focused on the governance and organisation of sovereign rating activities, the adequacy and expertise of allocated human resources, the disclosure of rating information to the public, and ensuring its confidentiality before disclosure. ESMA identified deficiencies and issues for improvement in the following areas: • Independence and avoidance of conflicts of interests; • Confidentiality of sovereign rating information; • Timing of publication of rating actions; and • Resources allocated to sovereign ratings. ESMA has not determined whether any of the Report’s findings constitute a breach of the CRA Regulation, and may take action as appropriate in due course. Steven Maijoor, ESMA Chair, said: “ESMA’s investigation revealed shortcomings in the sovereign ratings process which could pose risks to the quality, independence and integrity of the ratings and of the rating process. “The focus on the sovereign rating process in this investigation stems from their increased volatility over the past few years, the importance of sovereign ratings from a credit market and financial stability perspective, and their impact on other rated entities and products. “The impact which changes in these ratings can have on financial markets, and sovereign states, can be significant. Therefore, it is imperative that users can have confidence that the CRAs have adequate systems and controls in place to ensure that ratings are rigorous, free from conflicts of interest and timely. “The CRAs who were subject to this investigation still need to make improvements in their working practices to ensure their full compliance with the CRA Regulation and to eradicate inadequate practices from the past.” Investigation Findings The key areas where ESMA identified deficiencies requiring remedial actions by the CRAs included the following areas and related issues: 1. Independence and avoidance of conflicts of interests: ESMA has concerns that in a number of areas associated with conflicts of interest and independence, the actual failings or potential risks identified might compromise the independence of the ratings process and the quality of the credit ratings. These include: • the type of involvement of senior management in sovereign rating activities; • the independent review function’s participation in the sovereign rating process; • the research publication activities carried out by CRAs; • the involvement by certain non-rating functions (e.g. communication) in the rating process; and • the implementation of the appeal procedure. 2. Confidentiality of sovereign rating information The investigation identified deficiencies in the way confidential rating information is managed, in particular how access to information on upcoming rating actions on sovereigns is controlled. These include: • the disclosure of upcoming rating actions to an unauthorised third party; • inadequate controls in place for the circulation of rating information within the CRA(s); • the controls around the use of external communication consultants; and • inappropriate permissions and controls to secure access to rating information. 3. Timing of publication of rating actions: The investigation found that there had been instances of significant and frequent delays in the publication of sovereign ratings. ESMA also observed deficiencies in the advance notification to rated entities about upcoming rating actions. 4. Resources allocated to sovereign ratings: ESMA has concerns on the resources dedicated to sovereign ratings, in particular: • the lack of an adequate mechanism to assess the adequacy of resources; • assigning lead analyst responsibilities to junior or newly hired staff; • reliance on junior support staff; and • unclear definitions of functions and responsibilities. A number of good practices were also identified amongst the surveyed firms including analytical training programmes, practices designed to improve challenge in rating committees, and to ensure continuity in the allocation of analysts to sovereign portfolios. ESMA has required the CRAs to put in place remedial action plans to address the issues identified, and will monitor their progress against these plans as part of its on-going supervision.