Shearman & Sterling LLP | FinReg | EU Supervisory Authorities Finalize Proposed Revisions to Implementing Technical Standards for Mapping of External Credit Ratings
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  • EU Supervisory Authorities Finalize Proposed Revisions to Implementing Technical Standards for Mapping of External Credit Ratings
    05/20/2019
    The Joint Committee of European Supervisory Authorities has published a Final Report and final draft amending Implementing Technical Standards on the mapping of External Credit Assessment Institutions' credit assessments under the Capital Requirements Regulation. The Joint Committee comprises the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority. The publication of the Final Report follows the consultation conducted by the ESAs between October 26, 2018 and December 31, 2018.

    The proposed revisions will amend the existing Implementing Regulation (EU 2016/1799), which sets out how ECAIs' credit assessments should be "mapped" to credit quality steps for the purposes of calculating capital requirements. In particular, the final draft ITS contain amendments related to: (i) the re-allocation of the credit quality steps for two ECAIs; and (ii) changes in credit rating scales/types for ten ECAIs. The ESAs have also published updated mapping reports for each of the 11 ECAIs.

    The final draft ITS has been submitted to the European Commission. It is intended that the revised ITS will enter into force 20 days after publication in the Official Journal of the European Union. The final amended ITS will apply directly across the EU.

    View the Final Report and final draft ITS.

    View the ESAs announcement, including the updated mapping reports.

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