Discontinuation of credit ratings

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Question: How should a CRA ensure a sufficient level of transparency when a credit rating is discontinued in accordance with Article 10(1)? Question: Is a different level of transparency expected when a credit rating is withdrawn?

European Securities and Markets Authority · Accepted Answer

Answer : The discontinuation of a credit rating should be accompanied by an appropriate level of disclosure that includes the full reasons for the discontinuation. This information should be disclosed on a timely basis and in a non-selective manner. (i) Does this apply when a credit rating is incorrectly published and then discontinued? Yes. (ii) Does this apply when a credit rating is published and then incorrectly discontinued? Yes. (iii) Does this apply when a credit rating and information related thereto is removed from a credit rating agency’s website? Yes. Answer : ESMA expects that the level of transparency accompanying a withdrawal would not be less than that provided when a credit rating is discontinued. All credit ratings and rating outlooks should be presented and processed in accordance with the requirements of Section D of Annex I of the CRA Regulation. Further details on ESMA’s expectations can be found in ESMA’s Guidelines on the Disclosure of Credit Ratings [1] .    [1] ESMA33-9-320 Guidelines on Disclosure Requirements Applicable to Credit Ratings

Discontinuation of credit ratings

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