European Commission Issues Proposal for Regulation on Credit Rating Agencies

November 15, 2011

The European Commission has published proposals to reform the EU Regulation on Credit Rating Agencies in an effort to create greater transparency and competition amongst credit rating agencies operating in the EU.

Measures proposed include (i) more transparent and timely sovereign ratings, (ii) decreasing investors' reliance on ratings through avenues such as greater access to information from issuers (iii) increased diversity and independence of credit rating agencies, and (iv) avenues for investors to seek redress against credit rating agencies.

The proposals will now pass for consideration by the European Parliament and the Council of Ministers.