The Commission has published a summary of the responses its received to its consultation on credit rating agencies (CRAs). The responses:

  • echoed concerns about overreliance on ratings;
  • supported a requirement for firms to do their own due diligence and not just rely on ratings;
  • supported avoiding a mechanistic use of ratings;
  • agreed sovereign issuers should not get fundamentally different treatment to corporate issuers and supported improved transparency;
  • wanted to see more competition in the credit rating industry;
  • showed some support for civil liability claims against CRAs in some circumstances; and
  • agreed the “issuer pays” model has inherent conflicts, though said it should be possible to manage and minimise these.

(Source: Overview of Responses to Public Consultation on Credit Rating Agencies)