Thematic Review of the FSB Principles for Reducing Reliance on CRA Ratings – Final Report
The FSB decided to undertake this thematic peer review to assist national authorities in fulfilling their commitments under the Roadmap. The review was structured in two stages: the first stage comprised a structured stock-taking of references to CRA ratings in national laws and regulations, and this final stage focused on the action plans developed by national authorities to implement the Roadmap. The stock-taking exercise and development of action plans across the FSB membership represent a significant step toward reducing reliance on CRA ratings in standards, laws and regulations, but more work is needed to implement fully the agreed Roadmap. The challenges of identifying alternative standards of creditworthiness and the time required to build-up or enhance own credit risk assessment capabilities (especially for smaller entities) are hindering progress. National authorities need to intensify efforts to address these gaps in their action plans in order to meet the timelines set out in the Roadmap.