On 23 February 2022, the FCA issued its first portfolio letter to all credit rating agencies (CRAs) in its portfolio setting out what it expects CRAs to do to minimise risks to consumers, market integrity or competition from failures to meet regulatory requirements.

The portfolio letter sets out the FCA’s supervisory priorities under the following headings:

  • Ratings process and methodologies.
  • Governance and oversight.
  • Market and perimeter risks.
  • Operational resilience and resourcing.

The portfolio letter also briefly describes certain other areas including accessing and using wholesale data, ESG ratings and the senior managers and certification regime.