FT: French watchdog in credit rating alert
22 November 2010
Senior officials at the Financial Market Authority said they believed efforts to beef up credit rating standards could be jeopardised if regulators gave in to bank demands for the recognition of ratings carried out outside the 27-country bloc.
A political row has been simmering in Brussels for several weeks over the conditions under which ratings from outside the EU should be allowed to count for regulatory capital purposes.
The European Banking Federation said it was “greatly concerned” about the way EU regulators were interpreting new rules covering the use of ratings issued in “third countries” – those outside the EU – and warned there could be a “significant strain” on regulatory capital next year if this was not modified.
At a political level, its stance has been backed by countries such as Sweden, Holland and the UK.
© Financial Times
