ESMA Publishes Market Share Figures for Credit Rating Agencies in EU
ESMA published its annual market share calculation for EU registered credit rating agencies (CRAs) for 2019. The results show that the three largest CRAs—S&P Global Ratings, Moody’s Investor Service, and Fitch Ratings—account for 92.1% of the market for credit rating agencies in EU, representing a 2.7% increase on 2018. The remaining 7.9% of the market is shared between the other 23 CRAs that are registered in EU. The annual market share calculation also provides a breakdown of the type of ratings offered by each registered CRA as well as the proportion of ratings for EU debt issuance by asset class. This market share calculation is valid for use from its date of publication and is applicable until the date of publication of the next Market Share Calculation in 2020.
The CRA Regulation, under Article 8d, specifies that issuers and related third parties are required to consider appointing a CRA with no more than 10% total market share whenever they intend to appoint one or more CRAs to rate an issuance or entity. The report on the CRA market share calculation provides background and guidance on how the market share calculation should be used by issuers or related third parties. It also provides information on how the market share is calculated, a list of CRAs registered in EU along with their percentage of total market share by revenue, and an overview of the type of credit ratings offered by each CRA registered in the EU. The report shows the proportion of EU debt issuance for each asset class rated by individual CRAs, along with details on the Common Supervisory Approach and Standard Form adopted by ESMA members in respect of Article 8d.
Related Links
Keywords: Europe, EU, Banking, Insurance, Securities, Market Share Calculation, CRA, CRA Regulation, MIS, Fitch Ratings, S&P, Credit Risk, ESMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.