Some Point to ESMA’s Mandate
Agencies, CompliancesESMA sometimes turns a blind eye: ignored calls for help.
Search Results for: ESMA
Scope Group Not Within the Scope of ESMA
Agencies, Authorities, Registrations, RegulationsThe scandal surrounding Greensill Bank and the credit rating of Scope Ratings GmbH for this bank raises the question of how the situation at the Scope Group got out of control.
ESMA Hopes for Changes to CRA Supervisory Fees
Agencies, AuthoritiesESMA Consulting on New Mapping of ECAIs’ Credit Assessments
Authorities
ESMA Authorized Credit Rating Agencies
Agencies, Certifications, Read, RegistrationsIn the period leading up to the financial crisis in 2008, 2010 and so on, the European Commission considered to strengthen the regulatory and supervisory framework for Credit Rating Agencies (CRAs) in the European Union (EU), to restore market confidence and increase investor protection: (1) The first set of rules, which entered into force at the…
Formerly BB, Now Under Supervisor’s Scrutiny
Repairs, Reviews“Because the bonds purchased by the Adler Group no longer meet the requirements of the ECB, the central bank has now thrown them out of its portfolio in a move that caused a stir”, that is what the Börsen-Zeitung writes today. Only rating reports from S&P Global Ratings are available on the Adler website, the…
Securitization Rating Agency of the Year
AgenciesThe embarrassment for European credit rating agencies is certain even before the voting has started. “US Securitzation Awards 2022 – voting now live!” This is the call from GlobalCapital, inviting market participants to vote for the best rating agency when it comes to securitization. This is the choice:
Never Trust Google for Credit Ratings
RepairsAt first glance, it all seems like a nasty publicity ploy to lure unsuspecting savers to the website of an investment broker who wants to broker savings at risky banks. However, a closer look reveals that the provider in question does everything possible to provide correct information about the credit ratings issued by recognized credit…
Sanctions Against Russia Not Thought Through to the End
Agencies, InvestorsThe exuberant regulation of the credit rating agencies is always sprouting new flowers. The instrumentalization of rating agencies for political goals is being discussed at the United Nations, although right now it is becoming clear what negative effects it has when rating agencies are used for political sanctions. At the “High Level Meeting on the…
Morningstar Takes on the Regulation
Agencies, Registrations, RegulationsLooking forward to 2022, Morningstar, Inc.’s Joe Mansueto, Executive Chairman and Chairman of the Board, and Kunal Kapoor, Chief Executive Officer, expect the Board to support Morningstar’s strategic initiatives including an initiative they call “Organizational Design Responsive to Changes in our Regulatory Landscape”.
Investment Guidelines of German Municipalities in Practice
Agencies, Marketing, RegulationsUS rating agencies remain at an advantage over their European competitors. As the practical example of regulation in Hesse shows, the investment guidelines for municipalities cement the dominant position of the US rating agencies for every rated investment. Even the German rating agencies are out of the question for most communities. Since the ratings of…
Role of Credit Rating Agencies in Implementing Sanctions
Authorities, RegulationsESMA Chair, Verena Ross, takes a look at the rating market structure today, and sees that there are 24 CRAs in the EU registered with ESMA, located in 13 different Member States. She delivered a keynote speech at the European Association of Corporate Treasurers (EACT) Summit. Verena Ross spoke, among other things, about Credit Rating…
Russian Rating Agency Postpones Conference
Conferences
Switch Off Moody’s German Website
AgenciesIn 1991 Moody’s presented itself in full-page advertisements as the first German credit rating agency. Moody’s Investors Service now achieves an average operating margin of over 60% worldwide. However, after three decades, the German-language website of this leading international agency is still in a deplorable state. After so many years, Moody’s German website still does…
Disclosure Requirements for Initial Reviews and Preliminary Credit Ratings Discussed
Agencies, Authorities, Other, RegulationsThe European Securities and Markets Authority (ESMA) published its “Final Report” with “Guidelines on Disclosure Requirements for Initial Reviews and Preliminary Ratings“. The purpose of these Guidelines is to deliver guidance that will address inconsistencies in the application of these requirements by Credit Rating Agencies (CRAs), and by extension reduce the risks that are posed…
US Agencies’ Market Shares Remain a European Debacle
AgenciesThe excessive regulation of rating agencies in the European Union (EU) has failed to achieve its goal. The dominance of US rating agencies remains. Their ratings are practically the only decisive factor for the allocation of the economic resource “capital” in Europe. The three leading US agencies S&P Global Ratings Europe, Moody’s Investors Service and…
Rating Oligopoly Persists
Agencies“The EU requirements for providers of credit ratings have not broken the dominance of the three big agencies S&P, Moody’s and Fitch”, says a story published in Germany’s only stock exchange daily, Börsen-Zeitung. in Frankfurt on October 28, 2021. The author, Detlef Fechtner, reports on a speech deliverd by Steffen Kern, Chief Economist and Head…
ECB Sidelines Private Investors
ReportsIn a research piece titled “Covered bonds at a turning point?” published by Scope Ratings the dominate role of the European Central Bank (ECB) for credit rating agencies becomes once more very obvious. “The covered bond market is in upbeat mode. But while issuance has picked up significantly, public supply will remain well below the…
How Can the ECB Still Make Impartial and Objective Decisions?
OtherScope’s new Board of Trustee’s member could not only prove to be an own goal, but also bring disadvantages for competing agencies.
Rating Agency Violates Disclosure of Transparency Reports and More
Agencies, Authorities, Compliances, Registrations, RegulationsCRA Transparency Reports 2021 “Transparency Reports” of credit rating agencies (CRAs) are published in accordance with Article 12 and Annex I, Section E.III of the EU Regulation on Credit Rating Agencies: (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies, as amended by Regulation (EU)…
“The Last” Credit Rating Agency “Recognized By BaFin” Has “Disappeared”
Agencies, Registrations, Regulations
No Risk-Free Deposit World in this World
RepairsDr. Tamaz Georgadze comments in the renowned “Börsen-Zeitung” on the “Causa Greensill“ Deposit platforms such as the German “WeltSparen” and “Zinspilot” are among the most important innovations in banking: Customers get more choice and can benefit from higher interest rates from other banks. Deposit-taking banks efficiently diversify the sources of their customer liquidity, which contributes…
Billion Dollar Brand Name Given Away
Advertising, Agencies, Consulting, HistoriesRework requested Just a few years ago, a cereal was linguistically associated with Kellogg’s. Anyone who spoke of Kellogg’s in Germany thought of cornflakes and vice versa, anyone who thought of cornflakes would also think of Kellogg’s. In the meantime, discount chains – from Germany for example – such as Aldi and Lidl have revolutionized…
Standard & Poor’s. But “S&P Global Ratings”, Who?
Advertising, Agencies, MarketingStandard & Poor’s gave away a strong name “Landor announced that it has provided brand strategy and design services to McGraw Hill Financial for the company’s bold new brand identity as S&P Global. Landor partnered with the company to create a new name and design system that confidently marks S&P Global as the leader in delivering…
Which Rating Agencies the World is Looking for in Germany
AgenciesSome surprising observations Many Internet users do not bother to memorize the exact domain of a website, but simply enter a clear keyword into the Google search engine in order to be able to simply click on the desired result and visit the desired website. The displayed search results are therefore of great importance for…
The Only Credit Rating Agency Recognized by BaFin
Advertising, Agencies, Authorities, Registrations, RegulationsA not so unique rating agency
Beware of Shaky References
Agencies, Governance, Statistics
The Graveyard of Authorized Credit Rating Agencies in the European Union
Agencies, Authorities, Certifications, RegistrationsRating agencies have been registered in the European Union since 2010 in order to operate in accordance with the EU regulation on rating agencies of 2009 (CRAR). Dozens of agencies have therefore made use of the option, but also the obligation, to register or get certified. Rating agencies are only allowed to operate in the…
The “Scope Group” Has a Weakness for Hungary
Agencies, Methodologies
Credit Rating Agency Authorisation 2021
Agencies, Authorities, Certifications, RegistrationsLinks to websites of the Credit Rating Agencies authorized in the European Union. The credit rating agencies listed below have been registered or certified by the European Securities and Markets Authority (ESMA) in accordance with the Credit Rating Agencies Regulation. Domains of websites are added. According to ESMA, the list was last updated on May…
The Seven Year Itch of “Scope Ratings”
Uses
Questionable Independence of a Rating After a Partnership Agreement
Agencies, Compliances, Governance, Histories, Registrations, Regulations
Looking for a Rating Methodology – Where?
Agencies, Authorities, Compliances, Governance, Methodologies, Registrations, Regulations
Dear Customer, Which Methodology Would You Like?
Agencies, Authorities, Methodologies, Registrations, Regulations
Rating Actions in the Greensill Bank Case
Actions
Disclosure Requirements Are a First Step to SPACs Rating Criteria
AuthoritiesNo blank check for SPACs. Special purpose acquisition companies (SPACs) are shell companies that are admitted to trading on a trading venue with the intention to acquire a business and are often referred to as “blank check companies”. The European Securities and Markets Authority (ESMA) encourages National Competent Authorities (NCAs) to focus their scrutiny of…
Ernst & Young No Longer Has any Equity on its Balance Sheet
AgenciesAuditors have been making double-digit million losses for years. At Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (EY) in Germany, “equity” is on the assets side, namely as a “deficit not covered by equity” in the amount of € 62,715,000. The provisions, liabilities, deferred income as well as deferred taxes and fiduciary obligations exceed the company’s assets…
Ilija Batljan’s Rating Shopping Spree
RepairsAre upgrades driven by improvements in creditworthiness or by hopping from agency to agency? The activities of self-made millionaire Ilija Batljan are too conspicuous to be ignored in the financial markets. Ilija Batljan came to Sweden from Montenegro. He moved to Sweden in 1993 during the breakup of his native Yugoslavia and in 1996 earned…
Insolvent Greensill Bank Relied on “Scope Risk Solutions”
Agencies, Auditors, Authorities, Regulations
The Greatest Risk Was Not Reported
Actions
Political Network Makes It Possible
AuditorsBerlin network of politicians, raters and auditors. “Wirecard illusion factory only conceivable through political network”, is a quote from the Cicero, the German magazine for political culture. The members of the committee of inquiry have an unequivocal answer to this. The Christian Democratic Union (CDU) sees Finance Minister Olaf Scholz at the center of the…
Management Board of the Auditing Association of German Banks Changing
ReadFormer colleague of the later Greensill Bank Supervisory board member has left The Federal Association of German Banks (BdB) is drawing initial conclusions from the Greensill Bank‘s 3 billion euro compensation case. As the organization confirmed on request of the Börsen-Zeitung, it will analyze the structure of its auditing association and its staff with the…
Investment Grade Møller Mobility
Read, ReportsMøller Mobility thrives in symbiosis with Volkswagen. Nordic Credit Rating (NCR) assigned a ‘BBB-‘ (that reads triple B minus) long-term issuer rating to Norway-based car importer and retailer Møller Mobility Group AS (Møller Mobility). The rating agency’s outlook for this credit rating is stable. At the same time NCR assigned an ‘N-1+’ (that reads N…
Does the Embellished Rating Cost Jobs on Bank Boards?
AgenciesThe rating of a local rating agency does not exempt you from the responsibility to form your own judgment
First, ODDO BHF Takes the Chair, then the Scope Award
Agencies, CompliancesConflicts of interest have arisen again at a local rating agency in Berlin.
Some City Councilors Reproach the Use of Scope Ratings Instead of S&P’s and Moody’s
Agencies, Read, Registrations, RegulationsIn the city parliament of Giessen, the processing of the affair about the threatened loss of financial investments at the Greensill Bank has begun.
“EY puts Commerzbank in a mess”
Agencies, CompliancesConflicts of interest wherever you look.
Two Are On The Supervisory Board Of Greensill Bank. Then Why Scope Ratings And Not GBB-Rating?
AgenciesA Complicated Choice Between Conflicts of Interest. The rating of an independent credit rating agency is a valuable source of information also for the supervisory board of a company, especially for the supervisory board of a bank. The thoroughness of the analysis by credit rating analysts helps to understand the external view onto the company…
Scope’s Greensill Bank Rating Tragedy
Agencies, Authorities, Governance, Read, RegulationsThe Federal Financial Supervisory Authority (BaFin) filed criminal charges Against The Bank’s Board Members. The Federal Financial Supervisory Authority (BaFin) in Germany received monthly reports from Greensill Bank AG (Greensill Bank) about the bank’s balance sheet data from January 2019 on. This is evident from the answer given by Parliamentary State Secretary Sarah Ryglewski on…
Man Missing At Scope
Agencies, GovernanceInconspicuous elimination of a Scope Advisory Board Member
Clever Commission from the City of Münster in Westphalia
Agencies, Analysts, Authorities, ExpertsAn automated safety net for municipal investments has not existed since 2017. If municipalities do not want to set up extensive bond research departments themselves, in which financial analysts examine thousands of qualitative data and annual financial statements from issuers of financial products, the municipalities depend on the independent judgments of reliable credit rating agencies…
Scope Ratings Game of Corporate Law
Agencies, Authorities, WhistleblowingThe “Scope Group” is a bunch of constant changes under company law. As a result of the Scope Ratings GmbH billion Euro scandal about Greensill Bank in Bermen, which was rated as “investment grade” for the first time in 2019 and is now insolvent, the precise activities of this local rating agency in Berlin have…
RAG-Stiftung Must Have Known
Agencies, Governance, ReadScope Group is not at all related to the transformation of the regions along the Ruhr and Saar Rivers and in Ibbenbüren.
Why Scope Ratings Never Cares for Profits
AgenciesThe multi-layered shareholder structure allows for an ingenious business model.
Scope Ratings’ Ancillary Services for Greensill Bank
Agencies, AuthoritiesScope Ratings’ hint to possible additional payments by Greensill Bank to the Berlin rating agency leaves questions unanswered.
Unique Multi-layered Ownership Structure at Scope Ratings
Actions, AgenciesIn a week, the search queries for the Scope scandal have increased significantly.
Taxpayers Ultimately Become Victims of Scope Ratings
Agencies, Read, RegulationsThe Berlin rating agency Scope has top politicians on board who are already drawing high pensions. These politicians now indirectly cost the taxpayer even more.
Requirements Relating to Press Releases or Reports
News, Read, ReportsThe text of publications must meet strict requirements. The European Securities and Markets Authority considers that a credit rating or rating outlook should be accompanied by a press release or report. The press release or report should explain the key elements underlying the credit rating or rating outlook. At least the following elements should be…
Secured Income by Securing Deposits
Agencies, Clients, RegulationsThe system of deposit insurance in the private banking industry makes GBB-Rating almost indispensable. Cologne-based GBB-Rating, a company of the Auditing Association of German Banks, offers credit ratings with a price / performance ratio challenging its US peers. It is approved by the European Supervisory Authorities (ESAs) as an External Credit Assessment Institution (ECAI) for…
Concerns About the Impact of COVID-19 on Credit Ratings
ReadThe board of the International Organization of Securities Commissions (IOSCO) published the Final Report “Observed Impact of COVID-19 Government Support Measures on Credit Ratings“. IOSCO is the global standard setter for securities markets regulation. The pandemic’s economic and market turmoil led to many credit ratings downgrades and has put credit rating agencies (CRAs) and their…
Calculating Aggregate Risk Weight for Private Banks
ReadCalculation of the Aggregate Risk Weight for CRR Credit Institutions Assigned to the Compensation Scheme of German Private Banks The credit institutions under the Capital Requirements Regulation (CRR credit institutions) are obliged to secure their deposits in accordance with the German Deposit Guarantee Act by belonging to a deposit guarantee system. The following relates to…
Top Grade for the Distance University Run by the Rating Expert
Education, Experts, UniversitiesProf. Dr. Ottmar Schneck, Rector of the SRH Fernhochschule: “WOW – we did the triple! Three times in a row we have now received the coveted ‘Most Popular Distance University’ seal from ‘Distance Learning Check’ (Siegel ‚Beliebteste Fernhochschule‘ von ‚Fernstudium Check). We are very pleased to be able to hold this award from our students…
Six UK-Based Credit Rating Agencies Lost Their Registrations
Agencies, ReadThe European Securities and Markets Authority (ESMA), the supervisor of European Union (EU) credit rating agencies (CRAs), has withdrawn the registrations of CRAs based in the United Kingdom (UK). ESMA’s decisions follow the end of the transition period of the UK’s withdrawal from the EU, which occurred on December 31, 2020. UK credit ratings will…
S&P And Moody’s Are Losing Market Share in the EU
Agencies, Certifications, Read, Registrations, RegulationsFor the first time, the European Securities and Markets Authority ESMA has reported a decline in market shares in Europe for both of the major US rating agencies. The authority thus discloses a remarkable development. Never before have the two market leaders, who have been issuing their credit ratings worldwide according to recognized standards and…
SME Rating Dilemma
Agencies, Models, Read, RegulationsSmall and medium-sized companies have difficulties communicating their creditworthiness credibly. Recognized credit rating agencies concentrate their services on companies that go through a committee-based rating process. The legal framework in Europe offers no alternative to this. Only those who meet all the requirements of the EU regulation on credit rating agencies can be recognized as…
Credit Rating Criteria for Leasing Companies
Agencies, Criteria, ReadUnder the umbrella of the Auditing Association of German Banks, GBB-Rating Gesellschaft für Bonitätsbeurteil mbH (hereinafter referred to as “GBB-Rating”) provides long-term credit ratings of leasing companies. GBB-Rating has published criteria for the rating of leasing companies in German on its website. Unfortunately there was (August 23, 2020) no English translation. In the following are summarized some of their…
Leasing Company Rating
Agencies, Associations, Methodologies, Read, SystemsLeasing companies have been analyzed by leading US credit rating agencies for decades. In addition to these rating agencies, there are other rating approaches for leasing companies. Three of these are briefly presented here. The first relates to a joint initiative by Landesbanken and other credit institutions to operate bank-internal system for rating leasing companies.…
Rating in Austria
Advisors, Agencies, ReadThe Recognized Credit Rating Agencies listed by the European Securities and Markets Authority (ESMA) have been registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on Credit Rating Agencies (the Credit Rating Agencies Regulation). The list does not contain a rating agency…
Recognized Credit Rating Agencies
Agencies, Certifications, Read, Registrations, RegulationsThere are almost 200 countries in the world. Many countries do not have specific regulations on rating activities, but most industrialized countries do have laws on Credit Rating Agencies (CRAs). Credit Rating Agencies are required to get registered, licensed, recognized or certified. Until the Credit Rating Agency Reform Act of 2006 was introduced in the…
Monetary Authority of Singapore Encourages Ratings By Singapore-dollar Credit Rating Grant
Agencies, Certifications, Read, Registrations, RegulationsThe European Commission’s decision to repeal the equivalence status for Singapore Credit Rating Agencies does not impact the operations of Credit Rating Agencies in Singapore. As confirmed by the European Commission, Credit Rating Agencies in Singapore will continue to be able to access the European Union market through the endorsement regime which they currently operate…
Australian Securities and Investments Commission Licensed Credit Rating Agencies
Agencies, Certifications, Read, Registrations, RegulationsThe Australian Securities and Investments Commission (ASIC) published an information sheet (INFO 143) for credit rating agencies providing services in Australia. It gives guidance on the meaning of certain conditions that apply to these credit rating agencies under their Australian financial services (AFS) licence. It covers the scope and purpose of Australian Securities and Investments…
Glossary
On our website we use a number of abbreviations and acronyms. The full term is normally used at the beginning of the article, but we have gathered a list of the most commonly used acronyms for your ease of reference. AII Alternative Instrument Identifier AIFMD Alternative Investment Fund Managers Directive AMLTF Anti-Money…
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