ESMA has issued a discussion paper on the validation and review of Credit Rating Agencies’ (CRAs) methodologies. The consultation seeks stakeholder views on how CRAs should demonstrate rating methodologies’ “discriminatory power”, “historical robustness”, “predictive power” or, where there is limited quantitative evidence, that the methodologies are sensible predictors of credit worthiness. In addition, it asks how CRAs should meet requirements on rating methodologies. Consultation closes on 19 February 2016 following a hearing on 25 January 2016. (Source: ESMA Consults on CRAs Methodologies)