On November 11, 2015, the EBA, European Securities and Markets Authority and European Insurance and Occupational Pensions Authority (known as the Joint Committee of the European Supervisory Authorities) published two final draft ITS on the mapping of credit assessments to risk weights of External Credit Assessment Institutions under the CRR and Solvency II Directive. The ITS aim to ensure sound credit assessments to encourage financial stability in the EU and determine an objective approach for attributing risk weights to the assessment of ECAIs. The final ITS will replace the Committee of European Banking Supervisors' guidelines on the recognition of ECAIs as well as the existing mappings of ECAIs' credit assessments issued by national regulators. The final draft ITS have been submitted to the European Commission for endorsement.
The final draft ITS are available at: http://www.eba.europa.eu/-/esas-define-risk-weights-for-credit-ratings-in-the-eu.
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.
