Europe: Commission publishes credit rating agency proposals

Yesterday afternoon the European Commission published proposals for a Regulation and a Directive regarding credit rating agencies. A video recording of the Commission's press conference, at which the Internal Market Commissioner (Michel Barnier) spoke, is available here. It is proposed, amongst other things, that an agency should not provide a rating for a paying issuer for a period greater than three years. It would appear that Mr Barnier was unable to secure agreement amongst his fellow Commissioners for proposals concerning the suspension of sovereign ratings in exceptional circumstances; further analysis and work will therefore take place. For further information see: press release | FAQs | proposed Regulation (pdf) and Directive (pdf) | Impact assessment: executive summary (pdf) and full version (pdf) |