ESMA updated its questions and answers (Q&A) on the application of the credit rating agencies (CRA) Regulation, adding a new section on Organizational Requirements. This new section addresses the rotation periods applicable to analysts and persons involved in the approval of ratings.
The guidance will help to ensure that the CRA Regulation’s provisions for the rotation of analysts and persons approving credit ratings are clearly understood and consistently implemented by the EU registered CRAs. The Q&A document provides clarity by:
- Outlining the applicable rotation periods for different types of staff, lead analysts, analysts, and persons approving credit ratings
- Clarifying the circumstances in which exemptions from these rotation periods apply
- Clarifying how the rotation periods of these types of staff should be calculated
- Providing clarity on what ESMA understands to be a person approving credit ratings
Related Link: Q&A on Implementation of CRA Regulation (PDF)
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