To accelerate progress toward implementing the FSB Principles for Reducing Reliance on CRA Ratings, as requested by G20 Leaders, the FSB agreed a roadmap with milestones for concrete action. The roadmap consists of two tracks: 

  • Work to reduce mechanistic reliance on CRA ratings through standards, laws and regulations. 
  • Work by authorities to promote and, where needed, require that financial institutions strengthen and disclose information on their own credit risk assessment approaches as a replacement for mechanistic reliance on CRA ratings.

These two tracks will need to progress in parallel, since changes in rules are needed to provide the incentive for market participants to develop their own credit risk assessments, while at the same time mechanistic reliance can only be safely ended if market participants have developed such assessment capacity.