On November 7, 2016, the International Organization of Securities Commissions published a consultation paper on the use of non-traditional products or services offered by CRAs. IOSCO considers that these types of products and services are important because market participants use them to make investment and other credit-related decisions and issuers and obligors use them to make decisions about whether to obtain a credit rating from a particular CRA. Examples of the products and services include private ratings, confidential ratings, expected ratings, indicative ratings, prospective ratings, provisional ratings, preliminary ratings, credit default swap spreads, bond indices, research and portfolio assessment tools. IOSCO groups these products and services into six categories, providing descriptions for each category, namely: research, private, non-final, part of rating process, outside rating process and hybrids. IOSCO is seeking views on whether the other CRA products identified in the six groups are consistent with CRAs' and their users' understanding of the CRA industry, including whether the Code of Conduct and IOSCO
CRA Principles apply to other CRA products. The consultation closes on December 5, 2016. View the consultation paper at: http://www.iosco.org/library/pubdocs/pdf/IOSCOPD547.pdf.
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