Regulatory Alerts2011-12-22
Final Report - Draft RTS on the assessment of compliance of credit rating methodologies with CRA Regulation
The European Securities and Markets Authority (ESMA) issued this final report to submit draft Regulatory Technical Standards (RTS) to the European Commission for endorsement regarding the assessment of credit rating methodologies. The RTS establishes requirements for Credit Rating Agencies to ensure their methodologies are rigorous, systematic, continuous, and subject to validation in compliance with Article 8(3) of the CRA Regulation. Following a public consultation, ESMA refined the draft to clarify scope and prevent interference with analytical substance while maintaining obligations for back-testing and transparency.
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