ESMA consultation on Disclosure Requirements Applicable to Credit Ratings

19 March 2019

Consultation response

In its response Finance Watch:

  • Supported the proposed Guidelines for press releases that accompany credit ratings or rating outlooks, stressing however that the disclosure requirement should not only concern the number of pieces of information that should be disclosed but also the way according to which those pieces of information shall be provided
  • Highlighted that CRAs should disclose not only the methodology itself but how exactly the application of that methodology leads to a certain rating
  • Stressed that the guidelines should make clear that a methodology that does not consider climate change risks cannot be considered rigorous and systematic in accordance with article 8(3) of the CRA Regulation.