ESMA Approves Poland’s EuroRating as a CRA
The European Securities and Markets Authority (ESMA) has approved the registration of EuroRating, based in Poland, as a credit rating agency (CRA) under Article 16 of the CRA Regulation. The registration takes effect from 7 May 2014.
EuroRating’s registration as a CRA means that its credit ratings can be used for regulatory purposes under EU legislation.
A registered CRA must continue to comply, on an ongoing basis, with the regulatory requirements set out under the CRA Regulation.
ESMA is now responsible for supervising a total of 23 registered and two certified CRAs in the EU. Amongst the 23 registered CRAs, three operate under a group structure, totalling 16 legal entities in the EU, which means that the total number of CRA entities registered in the EU is now 36.
ESMA’s supervisory mandate applies to all CRAs established in the EU which issue credit ratings that are disclosed publicly or distributed by subscription. The exercise of that supervision includes the possibility to impose sanctions, including penalties, in case of breaches of the requirements established by the Regulation. Those requirements include the obligation to be registered by ESMA before engaging in rating activities.