KROLL BOND RATING AGENCY LLC’s CERTIFICATION STATUS WITHDRAWN
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has withdrawn Kroll Bond Rating Agency LLC’s (Kroll LLC) ability to certify its credit ratings for use in the European Union (EU).
The withdrawal decision follows the official notification sent to ESMA by Kroll LLC on 23 July 2020 of its intention to renounce its ability to certify credit ratings for use in the EU under the conditions set out in Article 20(1)(a) of the CRA Regulation. Following the removal of Kroll LLC’s certification status, Kroll Bond Rating Agency EU will continue to issue credit ratings and will endorse some of the credit ratings of Kroll LLC for use in the EU.
Point (a) of Article 20(1) of the CRA Regulation provides that without prejudice to Article 24, ESMA shall withdraw the registration of a credit rating agency (CRA) where the CRA "expressly renounces the registration or has provided no credit ratings for the preceding six months". Article 5(8) of the CRA Regulation explains that Article 20 also applies to certified CRAs.