Does the proposal standardise the elements of a credit rating opinion?
The proposed Regulation introduces rules on the presentation of credit ratings. These rules refer only to specific elements of a rating opinion and do not aim to create a single format for its presentation. As proposed, users of ratings may expect to find in a rating opinion the following elements at least: • name and job title of the lead analyst, • indication of material sources for the rating opinion, • information, whether draft rating was disclosed to the issuer and changed following dialogue with the issuer, • information on methodologies used, • explanation of risks involved, sensitivity analysis of the assumptions made, worst-case and best-case scenario ratings, • date of issue and last update of the rating, • any limitations of the rating, • extent to which information provided by the issuer and used in the rating process was verified. 10. As a user of ratings, how will I benefit from increased CRAs’ transparency? Firstly, the CRAs will be required to provide more information
