ESMA consults on possible amendments to the Credit Rating Agencies Regulatory Framework

Apr 2nd '24

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on proposed amendments to Commission Delegated Regulation (EU) No 447/2012 and to Annex I of the Credit Rating Agencies Regulation (CRAR).


The objective of the proposals is to ensure a better incorporation of ESG factors in the credit rating methodologies and subsequent disclosure to the public, as well as to enhance transparency and credibility in the credit rating process.


In particular, they aim to:


  • ensure that the relevance of ESG factors within credit rating methodologies is subject to systematic documentation;
  • enhance disclosures on the relevance of ESG factors in credit ratings and rating outlooks;
  • deliver a more robust and transparent credit rating process through the consistent application of credit rating methodologies.


Next steps

ESMA will consider the feedback received to this consultation and will submit its Technical Advice to the European Commission by December 2024.


Source: ESMA


About ESMA

ESMA was founded as a direct result of the recommendations of the 2009 de Larosière report which called for the establishment of a European System of Financial Supervision as a decentralised network. It began operations, under its Founding Regulation on 1 January 2011, replacing the Committee of European Securities Regulators which was a network of NCAs which promoted consistent supervision across the EU and provided advice to the European Commission.