On October 12, 2016, the Commission Implementing Regulation (EU) 2016/1799 of October 7, 2016 laying down implementing technical standards (ITS) with regard to the mapping of credit assessments of external credit assessment institutions (ECAIs) for credit risk in accordance with Articles 136(1) and 136(3) of the Capital Requirements Regulation and the Commission Implementing Regulation (EU) 2016/1800 of October 11, 2016 laying down ITS with regard to the allocation of credit assessments of ECAIs to an objective scale of credit quality steps in accordance with the Solvency II Directive were published in the Official Journal of the EU (OJ).
The aim on these ITS is to determine a prudential approach for cases lacking factual evidence and an objective approach for attributing risk weights to the assessment of ECAIs.
Draft versions of these ITS were published in November 2015 by the Joint Committee of the European Supervisory Authorities, who subsequently published an opinion in May 2016 rejecting the proposal by the European Commission to remove the more conservative mapping of ECAI credit assessments that the ESAs had proposed to be applied from January 1, 2019.
The ITS published in the OJ do not contain provisions relating to the introduction of the more conservative mapping, and the Commission has added wording to the recitals to explain its approach with regards to the issue.
The Implementing Regulations will enter into force on November 1, 2016.
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