The European Commission has published a report on the feasibility of a network of smaller credit rating agencies (CRAs), together with an accompanying staff working document. The overall objective of establishing such a network is to strengthen the smaller CRAs and facilitate their growth to become more competitive players in the market.
The report identifies and analyses the feasibility of various policy options, through which such a network could be established. The analysis also covers the operational and financial aspects of such a network. The report then sets out conclusions based on its analysis and proposes short as well as medium/long term steps.
One of the short term policy options that the Commission proposes as an alternative to creating a network is the establishment of a regulatory dialogue. The reasoning behind this is that the analysis of the market has identified a need among smaller CRAs to have a means of exchanging information on the state of the CRA market and in particular on issues that affect smaller market players.
View Commission staff working document (accompanying the document) – Report from the Commission to the Council and the European Parliament on the feasibility of a network of smaller credit rating agencies, 5 May 2014