The Financial Stability Board has published the final peer review report on national authorities' implementation of the FSB Principles for Reducing Reliance on CRA Ratings.

The review outlines that progress towards the removal of references to CRA ratings from standards, laws and regulation has been uneven across jurisdictions and the financial sectors and that removing references to CRA ratings from laws and regulations is only the first step - mechanistic reliance on CRA ratings can also come from market practices and contracts.

The key challenge lies in developing alternative standards of creditworthiness and processes so that CRA ratings are not the sole input to credit risk assessment. National authorities therefore need to focus on establishing stronger internal credit risk assessment practices. In some instances, this may entail a fully independent risk assessment, and in other instances this may allow using CRA ratings as one indicator, amongst others, of credit risk.