Press Release: Commission wants better quality credit ratings

Credit rating agencies (CRAs) are major players in today's financial markets, with rating actions having a direct impact on the actions of investors, borrowers, issuers and governments. For example, a corporate downgrade can have consequences on the capital a bank must hold and a downgrade of sovereign debt makes a country's borrowing more expensive.

Despite the adoption of European legislation on credit rating agencies in 2009 and 2010, recent developments in the context of the euro debt crisis have shown our existing regulatory framework is not good enough. The Commission has put forward proposals to toughen that framework further and deal with outstanding weaknesses.

• Primary Source

ESO: Background Information: France launches inquiry after accidental downgrade http://www.europeansources.info/record/france-launches-inquiry-after-accidental-downgrade/

European Commission: Memo/11/788: Frequently asked questions: legislative proposal on credit rating agencies (CRAs) http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/788&format=HTML&aged=0&language=EN&guiLanguage=en

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