ESMA consults on possible amendments to the Credit Rating Agencies Regulatory Framework

Summary:

The European Securities and Markets Authority (ESMA) has launched a consultation on proposed amendments to Commission Delegated Regulation (EU) No 447/2012 and to Annex I of the Credit Rating Agencies Regulation (CRAR). The objective is to enhance the incorporation of ESG (Environmental, Social, and Governance) factors in credit rating methodologies and associated disclosure to the public, and to increase transparency and credibility in the credit rating process. The proposed amendments aimed to ensure systematic documentation of ESG factors' relevance, enhance disclosure on ESG factors in credit ratings and rating outlooks, and provide a more robust and transparent credit rating process through the consistent application of credit rating methodologies.