The ESAs have published the final two draft ITS on the mapping of credit assessments by external credit assessment institutions (ECAIs) under the Capital Requirements Regulation (CRR). The ESAs intend that only credit ratings issued by ECAIs can be used for calculating capital requirements of financial institutions and insurance undertakings. The ESAs have specified an approach that establishes the correspondence, “mapping”, between credit ratings and the credit quality steps defined in the CRR and Solvency 2. The factors and benchmarks for consideration to this end are specified in the ITS. The ITS have been submitted to the Commission for endorsement. The document also contains feedback to a consultation on this matter (see FReD 14 August). (Source: ESAs Define Risk Weights for Credit Ratings)