Thematic Review of the FSB Principles for Reducing Reliance on CRA Ratings – Interim Report
In October 2012, the FSB published a roadmap with timelines to accelerate implementation of the FSB Principles for Reducing Reliance on Credit Rating Agency (CRA) Ratings. The roadmap consists of two tracks: work to reduce mechanistic reliance on CRA ratings through standards, laws and regulations; and work to promote and, where needed, require financial institutions to strengthen their own credit risk assessment processes as a replacement for reliance on CRA ratings, and disclose information on those processes. In order to support the agreed roadmap, the FSB decided to undertake a thematic peer review, whose main objective is to assist national authorities in fulfilling their commitments under the roadmap. The review focuses on those aspects of the Principles that are directly addressed to the official sector and it is structured in two stages, the first of which - described in this report - comprises a structured stocktaking of references to CRA ratings in national authorities' laws and regulations and of actions taken and underway to reduce these references. The FSB intends to issue the final peer review report in early 2014.