On 9 November 2026, the European Commission adopted two Delegated Regulations relating to credit rating methodologies under the Credit Rating Agency (CRA) Regulation:
- Commission Delegated Regulation (EU) amending Annex I to the CRA Regulation as regards transparency, review and validation of methodologies. Point 1 of the Annex to this draft Delegated Regulation requires CRAs to establish clear processes for validating their methodologies, models, and key rating assumptions. Point 2a of the Annex to this draft Delegated Regulation introduces a new disclosure obligation. It requires that CRAs must highlight ESG factors driving ratings or outlooks, with a brief explanation, to ensure transparency and align with EU sustainable finance objectives. Point 2b of the Annex to this draft Delegated Regulation requires CRAs to disclose not only the methodologies they use but also the processes by which they validate those methodologies when presenting credit ratings or rating outlooks.
- Commission Delegated Regulation amending the regulatory technical standards laid down in Commission Delegated Regulation (EU) No 447/2012 as regards strengthening the transparency and incorporation of environmental, social and governance factors in credit rating methodologies. This draft Delegated Regulation amends Delegated Regulation (EU) No 447/2012 in order to more rigorously incorporate ESG factors in credit rating methodologies and to set criteria that those methodologies need to meet when incorporating ESG factors in creditworthiness assessments.
The draft Delegated Regulations will enter into force on the twentieth day following publication in the Official Journal of the EU and will apply 12 months later.