On 15 May 2026, the Financial Conduct Authority (FCA) published the results of its multi-firm review of UK-registered credit rating agencies (CRAs) which focused on surveillance processes, credit rating methodologies and internal controls.

Background

In the review the FCA sought to understand how CRAs maintain robust arrangements for ratings surveillance, consistent application and ongoing review of methodologies, and effective internal controls under the UK Credit Rating Agencies Regulation. The regulator’s findings are based on a sample of firms and involved:

  • Analysis of scoped information provided by CRAs including rating and control review files .
  • Analysis of internal procedures of CRAs.
  • Engagement with analytical and control functions of CRAs.
  • Review of regulatory notifications. 
  • Ongoing supervisory work.

Findings

The FCA sets out good practices it observed and areas for improvement as regards surveillance, credit rating methodologies and their application and internal controls.

The FCA has also set out an Annex setting out its observations as to how firms consider ESG factors and disclose them in their methodologies and rating action.

Next steps

CRAs should review these findings, evaluate their processes and controls under Board oversight, and consider if gap analysis and remediation are necessary.