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.