On 7 December 2023, the European Securities and Markets Authority issued a final report on EU credit ratings for collateralised loan obligations (CLO). The report highlights potential conflicts of interest risks that were observed in the dialogue between credit rating agencies (CRAs) and market participants, and the potential influence these may have had on the CLO methodology development and rating process of the concerned CRAs from 2017 to 2021. ESMA has informed each CRA of its findings and will develop individual remedial action plans to ensure appropriate safeguards and controls are in place. ESMA will continue to monitor the developments in CLO markets, including changes in CLO credit ratings, rating practices and rating methodologies.