The focus on ratings has increased in the wake of bankruptcy filings by large publicly held companies with rated securities. In some of these cases, CRAs have been criticized for failing to notice evidence of financial problems at several major issuers until just prior to the entity’s collapse.
The consequent increased importance of ratings to the efficient functioning of markets inevitably increases the need for confidence in the reliability and quality of those ratings.
Due to the growing importance of CRAs in financial markets and recent events in these markets, numerous public contributions have already been made on the topic.
In the annex to the call for advice attached as Annex A, the Commission provides an exhaustive summary of the main strands that have been, or are being, undertaken internationally on credit rating agencies. A brief summary of the main actions highlighted by the Commission, with the necessary updates, is provided below. All the following documents have been duly taken into consideration by the task force when producing the advice.
