|
|
EU registered CRAs’ total market shares have been calculated by reference to the annual turnover from CRAs and ancillary services at group level during the calendar year 2013. ESMA also lists the types of credit ratings issued by each registered CRA in 2014. The rating types are classified as follows: corporate ratings(including non-financial, financial, and insurance ratings), sovereign ratings, structured finance ratings and covered bond ratings.
One of the objectives of the CRA Regulation is to increase competition in the markets for credit ratings by encouraging issuers to use smaller credit rating agencies. To this end, Article 8d (1) of the CRA Regulation states that where issuers or related third parties intend to appoint at least two CRAs to rate an issuance or entity, they shall consider appointing at least one CRA with no more than 10% of the total market share. They will consider this where the issuer or related third party finds that such a CRA is capable of rating the relevant issuance or entity and there is such a CRA available to rate the issuance or entity in question.
Where it is not possible to appoint at least one CRA with no more than 10% of the total market share, the issuer or related third party shall document this. The obligations in Article 8d are supervised and enforced at national level by sectoral competent authorities.