Following the financial crisis that followed the subprime crisis, a demand arose for independence from the globally active U.S. rating agencies (Standard & Poor’s, Moody’s, Fitch: the latter is majority-owned by France) and the creation of a separate agency, initially perhaps only for the euro area. Appropriate steps have been taken with the establishment of the Rating Service Unit. – However, the cost of market entry for such an agency is very high. – Nor is it at all certain that a European rating agency would perform its tasks better than the agencies operating to date, which are also in strong competition with each other. – Furthermore, there is the danger that such a European rating agency would come under strong political pressure and would not be able to make its decisions on the basis of undisputed facts or to publish the corresponding ratings freely. – Finally (last but not least), there is no reason at all why one should respond to bad ratings by the agencies by getting angry and founding one’s own agency. Rather, it is necessary to ensure that the deficiencies disclosed by the international rating agencies are remedied. – The constant scolding of rating agencies by European politicians, not only from the Southern Front, is reminiscent of demonizing the clinical thermometer instead of cursing the fever. – See rating agency, legal requirements.
Rating agency, statutory standards for rating agencies: According to the EU Regulation on the Regulation of Credit Rating Agencies, which came into force on December 7, 2009, credit rating agencies operating in the EU must – be subject to registration and supervision by the supervisory authority of the home country. may not provide simultaneous advisory and rating services for a company; this is primarily intended to prevent any conflict of interest between credit rating and advisory services for structured finance products; – must disclose the origin of their ratings in a manner that is comprehensible to all; – are required to continuously review the validity of their ratings from the ground up; – are required to employ a sufficient number of competent employees, who – must also be assigned new tasks at appropriate intervals in order to prevent operational blindness; a rating agency may only issue ratings for one and the same company for a limited period of time. – Such a legal framework for rating agencies was deemed necessary because the agencies are believed to have been partly to blame for the emergence of the subprime crisis, which intensified into a global financial crisis in the fall of 2008. – On the other hand, it is feared that the licensing and oversight process for rating agencies could lead to an increase in their role as omniscient appraisal authority, which in turn would, among other things, reduce the required vigilance of investors. – See rating agency. – Cf. BaFin Annual Report 2009, p. 57 et seq. (main content of the EU regulation; guidelines on individual points of the regulatory regulation), p. 121 (catalog of fines with regard to rating agencies), BaFin Annual Report 2013, p. 138 (more details on the regulation on rating agencies with regard to insurance companies) and the respective BaFin Annual Report.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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