Updated 22/12/2024
In force

Initial Legal Act
Amendments
Search within this legal act

Article 8 - Exemption

Article 8

Exemption

In cases where there is limited quantitative evidence to support the predictive power of a credit rating methodology, a credit rating agency shall be exempt from complying with Article 7 of this Regulation if it:

(a)

ensures that credit rating methodologies are sensible predictors of credit worthiness;

(b)

applies internal procedures in a consistent way and over time and across different market segments;

(c)

has processes in place to ensure that systemic credit rating anomalies highlighted by back-testing are identified and are appropriately addressed.