CESR call for evidence on credit rating agencies.

28 July 2004

CESR has published a call for technical advice on possible measures concerning Credit Rating Agencies. The technical advice will deal among others with the risk that advisory services by rating agencies might influence the rating of these issuers, the risk that payments for credit ratings might influence the rating, and the risk that capital links between rated issuers and credit rating agencies might influence the rating.

The call for technical advice identifies four fields in particular:

Handling of potential conflicts of interests within rating agencies;

Transparency of rating agencies’ methodologies;

The legal treatment of rating agencies’ access to inside information; and

Concerns about the possible lack of competition in the market for provision of credit ratings.

CESR must provide its advice to the European Commission by 1 April 2005. Responses can be submitted by 27 August 2004.

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