CEBS draft revised guidelines on the recognition of ECAIs(CP37)

Start Date: 11/03/2010 | Deadline: 09/04/2010

The Committee of European Banking Supervisors (CEBS) today publishes its consultation paper (CP37) on the review of its Guidelines on the recognition of External Credit Assessment Institutions (ECAIs) of 20 January 2006. The consultation is open to all interested parties, including supervised institutions and other market participants.

To ensure consistency between Regulation (EC) No 1060/2009 on Credit Rating Agencies (hereafter the Regulation on CRAs) and the Capital Requirements Directive (in particular Directive 2006/48/EC, hereafter CRD), Articles 81(2) and 97(2) of the CRD have been amended to avoid duplication of work and reduce the burden of the recognition process where an ECAI is registered as a CRA at Community level.

In this context, CEBS has reviewed its Guidelines on the recognition of ECAIs to make clear that for CRAs, which are registered under the Regulation, the only criteria that should be assessed in the ECAIs' initial recognition process and on-going review are the technical criteria on ‘Credibility and Market Acceptance' and ‘Transparency and Disclosure' with respect to their individual credit assessments. The remaining technical criteria are assessed during the registration process under the Regulation on CRAs and are considered to be satisfied for the purposes of the ECAIs' recognition process.

In addition, drawing on the experience of CEBS members in the application of the Guidelines, CEBS has taken this opportunity to review its common understanding of the technical criteria set out in Part 2 of Annex VI of the CRD and proposes limited amendments to its understanding of the requirements on ‘Credibility and Market Acceptance' and ‘Transparency and Disclosure' with respect to the individual credit assessments.

CEBS publishes its draft revised guidelines for a public consultation which starts today and runs until 09 April 2010(1). Please note that comments are sought only in respect to the amendments to the Guidelines. Comments received will be published on CEBS's website unless respondents request otherwise. Please send your comments to the following email address:

(1) In accordance to CEBS's Public Statement of Consultation Practices, the public consultation period is reduced to one month given that the Guidelines have been previously submitted to a full consultation period and are only subject to limited amendments.