Use of credit assessments by ECAIs not in scope of Regulation (EC) No 1060/2009.

An external credit assessment issued by an external credit assessment institution (ECAI) that is transmitted or shared in a form that does not correspond to public disclosure or distribution by subscription does not meet the requirements of Article 135(1) of the CRR, except in the case the external credit assessment is produced by a central bank. In accordance with Article 135(1) of Regulation (EU) No 575/2013 (CRR), an external credit assessment may be used to determine the risk weight of an exposure under its Chapter 2, Title II, Part Three only if it has been issued or endorsed by an ECAI, in both cases in accordance with Regulation (EC) No 1060/2009 (CRAR). In accordance with the definition provided under point (98) of Article 4(1) CRR, an ECAI can be: 1. Either a credit rating agency that is registered or certified in accordance with CRAR. 2. Or a central bank issuing credit ratings which are exempted from the application of the CRAR when produced in accordance with Article 2(2)(d) of that Regulation. For an external credit assessment to be issued or endorsed by an ECAI in accordance with the CRAR it needs to be in scope of that Regulation. To be in scope of the CRAR, its Article 2(1) stipulates that the credit rating needs to be disclosed publicly or distributed by subscription and the credit rating agency needs to be registered or certified in the Union.