On October 19, 2016, the European Commission published a
report (COM(2016) 664 final) responding to reporting
obligations set out in Regulation 1060/2009 (CRA
Analyzes references to external
credit ratings in EU legislation and in private contracts among
parties in financial markets.
Assesses potential alternatives to
external credit ratings that are currently used by market
participants in the EU. The Commission is of the view that there
are currently no feasible alternatives that could entirely replace
external credit ratings.
Evaluates the impact of the CRA
Regulation on governance and internal procedures of CRAs, in
particular the prevention of conflict of interests and the use of
alternative remuneration models.
Analyzes the provisions relating to
structured finance instruments (SFIs) and their potential extension
to other asset classes. The Commission does not think it is
appropriate to extend CRA Regulation provisions to other financial
Assesses the impact and effectiveness
of the CRA Regulation's measures concerning competition in the
credit rating industry. Given some provisions are still in the
process of implementation, the Commission will continue monitoring
the development of the market before considering the adoption of
further measures. More generally, the Commission will seek to avoid
and further reduce regulatory barriers to market entry.
Considers the feasibility of
establishing a European CRA for the assessment of sovereign debt
and a European credit rating foundation for all other credit
ratings. The Commission considers there to be no need at present
for a European CRA specialized in sovereign debt or for other
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