Première transmission: 14/01/2013
Fin de production: 14/01/2013
What the new rules set out to achieve:
One goal is to reduce the reliance on rating agencies. Credit institutions and investment firms will have to put into place internal procedures for assessing their own credit risk, while issuers of structured finance instruments will be required to seek two ratings at once from two different agencies as well as to switch to a different agency every four years.
There should also be more transparent and more frequent sovereign debt ratings. There would be stricter controls on when credit rating agencies could publish their rating of sovereign states, which would only be at specific times of the year. Agencies would need to explain the key factors underlying their ratings and refrain from making any direct or explicit recommendations on countries' policies. In addition they would not be able to issue explicit recommendations on member states' policies.
Conflicts of interest should also be eliminated.This is why shareholdings of credit rating agencies in rated agencies would be capped. The new rules would prohibit agencies' shareholders with 10% or more of the capital or voting rights from holding 10% or more of a rated entity. They will also be prevented from owning 5% or more of the capital or voting rights in more than one agency unless the agencies involved belong to the same group.
Finally, credit rating agencies should become more accountable for the ratings they provide. Investors or share issuers will be able to claim damages for ratings that prove to be ill-founded and harm their interests.
The rules would apply to all credit rating agencies operating in the EU.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior shot, "Water St" et "Vietnam veterans plaza" you see the Stock Exchange movements of the day on a LCD display, 3 shots, New York, U.S.
||Exterior shot, New York Stock Exchange, New York, USA, 5 shots (including one showing the street name "Wall Street")
||Exterior shots of the building Standard & Poor's, NY, USA, 6 shots
||cut away shot of street names, 2 shots
||Exterior shots of the building "Fitch Ratings", 4 shots
||Street shot of NY, 2 shots