UK:
ESMA Clarifies Timelines For Publication Of Credit Ratings And Rating Outlooks
10 April 2017
Reed Smith (Worldwide)
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Credit rating agencies ('CRAs') that operate in the EU
will be interested to hear that on 30 March 2017, ESMA published an
update to its Questions & Answers (Q&A) on the
'CRA' Regulation (Regulation 1060/2009, as amended in 2011
and 2013). The CRA Regulation requires CRAs within the EU to
be registered and to comply with requirements relating to their
independence and avoidance of conflicts of interest, their
methodologies, their disclosures and their approach to sovereign
debt. It also contains requirements on parties involved in
securitisations in respect of the rating of structured finance
instruments.
Further guidance on Article 10 of
the CRA Regulation (covering Disclosure and Presentation of Credit
Ratings) has been provided by way of an additional section to the
Q&As, which can be found here.
The guidance will ensure that CRAs
and rated entities are clear as to their roles and responsibilities
under this provision by specifically confirming how much time a CRA
should provide to a rated entity prior to the publication of a
credit rating or rating outlook: 24 hours, at a minimum. It
will also protect investors by ensuring the timely publication of
credit ratings and rating outlooks "without delay".
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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