Wednesday October 28 2020

News Source: Global Exchanges

Focus: Credit Rating

Type: General

Country: European Union

Link: https://bit.ly/3kA46gx




On 27th October 2020, the European Securities and Markets Authority (ESMA) issued a public statement to set out the implications of Brexit for credit rating agencies (CRAs) based in the United Kingdom (UK). The statement follows ESMA’s previous statements of 15th March 2019 and 9th November 2018.

With this statement ESMA confirms that EU CRAs will be able to endorse credit ratings elaborated in the United Kingdom after the end of the transition period.

The public statement includes the below:

  • Implications of Brexit for UK based CRAs
  • The UK legal and supervisory framework meets the conditions for endorsement
  • Objective reasons for elaborating a credit rating outside the EU
  • The final decision to endorse credit ratings lies with the CRA

Click on the above link for further information.