The European Council has adopted a directive and a regulation amending the EU's rules on credit rating agencies (CRAs). This development follows agreement reached with the European Parliament last November 2012 and subsequent approval by the Permanent Representatives Committee on 5 December 2012.

The directive and regulation amend existing legislation on CRAs in order to reduce investors' over-reliance on external credit ratings, mitigate the risk of conflicts of interest in credit rating activities and increase transparency and competition in the sector.