The purpose of ESMA's Q&A document is to provide clarity on the requirements and practice in the application of the CRA Regulation and in particular, the CRA III Regulation by CRAs and other market participants.
Since the amending CRA III Regulation entered into force on 20 June 2013, CRAs should in accordance with the new Article 8a of the CRA Regulation communicate to ESMA and publish on their website the calendar setting the rating actions on sovereign ratings and outlooks for the 12 following months before the end of December 2013. Those rating actions and outlooks will have to take place on a Friday as from the first Friday of January 2014 onwards.
CRAs have to follow the announced calendar of sovereign ratings and outlooks as a general rule. However, CRAs have also to comply with the overarching principle of timely issuing credit rat-ing of adequate quality. In order to combine both principles, the Regulation allows CRAs to de-viate from the announced calendar where necessary to comply with the obligation to disclose credit ratings based on all available and relevant information in a timely manner.
Article 6a of the CRA Regulation provides specific rules regarding the relations between the CRAs and their shareholders or members. A shareholder or a member of a CRA registered in the EU should not simultaneously hold a participation of 5 per cent or more in two or more CRAs registered in the EU, unless the credit rating agencies concerned belong to the same group. CRA Regulation exempts from that rule holdings in diversified collective investment schemes, including managed funds such as pension funds or life insurance.
By 21 June 2014, there should not be any shareholder or member of a EU registered CRA holding 5 per cent or more of the capital or the voting rights of more than one CRA “acquired” on or before 15 November, 2011.
Full Q&A document
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