ESMA has published the latest set of semi-annual statistical data on the performance of credit ratings including transition matrices and default rates in its Central Rating Repository (CEREP). This new set of statistics covers ratings data up to 31 December 2012.

FSB is undertaking a thematic peer review, whose main objective is to assist national authorities fulfil their commitments under the agreed CRA ratings roadmap, the primary source of information for which will be the responses to this questionnaire.

The uncorrected evidence of the hearing held on 13 March 2013 has been published. Topics include: insurance regulation’ PRA/FCA staff figures and credit rating agencies.

ESMA has formally approved the certification in the EU of Kroll Bond Rating Agency Inc. (KBRA) under Article 16 of the Credit Rating Agencies Regulation. The certification takes effect from 20 March 2013.

ESMA has published its second annual report on its supervision of credit rating agencies in the EU, including details on its supervisory, registration and policy work. It also covers ESMA’s investigation into bank rating methodologies and the follow up work to the March 2012 report on deficiencies in CRAs rating processes, governance and control mechanisms. The report finds that credit rating agencies have not sufficiently embedded the main requirements of the Credit Rating Agency Regulation in their organisations, and ESMA believes that improvements are still necessary in the areas of: the application and comprehensive presentation of rating methodologies; the empowerment and resourcing of analytical and control functions; the monitoring and surveillance of ratings; and the reliability of IT infrastructures. These issues will form the basis for much of ESMA’s supervision activities as outlined in its 2013 Work Plan.

ESMA has published the text of the above.

ESMA has set out the key elements of its supervisory programme for the registered and certified credit rating agencies in the EU. The key areas of supervisory focus will be: thematic reviews on the rating processes for structured finance products ratings and sovereign credit ratings; raising standards of compliance with the obligations of the Credit Rating Agencies Regulation, including a review of the effectiveness of IT structural and procedural controls around the publication of credit ratings; ensuring that small and medium-sized agencies meet required compliance, systems and controls and business strategy standards policing the perimeter to ensure that all firms operating within the scope of the Regulation are registered and subject to supervision. Highlighted policy work includes the production of draft regulatory technical standards and implementing the new supervisory tasks on the prevention of conflicts of interest regarding agencies’ significant shareholders and the new provisions for sovereign debt ratings.

These documents discuss the European Parliament's first reading of the Credit Rating Agencies Regulation and relevant amendments on the UCITS and AIFM Directives on 14 -17 January 2013. Marked-up versions of the legislation to reflect the changes made by the amendments to the EC's proposals are provided. It is noted that the European Parliament's position reflects what had been agreed between the institutions and ought therefore to be acceptable to the European Council, which should be in a position to approve this once the text has been examined by “legal-linguistic experts”.

Further to the European Parliament’s vote to approve the Regulation which will allow agencies to issue unsolicited sovereign debt ratings only on set dates, and enable private investors to sue them for negligence, the EC has published a statement by Michel Barnier along with an FAQ on the matter.

This press release notes that MEPs were to discuss the legislation in respect of credit rating agencies on 15 January 2013 and vote on an agreement that has been reached with the European Council on the following day.