IDid you know that Credit Rating Agencies (CRAs) can issue ratings even when no request has been made by the rated entity?
Under the EU Credit Rating Agency Regulation (Regulation 1060/2009), such ratings are known as unsolicited credit ratings. They can be issued:
At the request of investors seeking an opinion on an unrated entity, or
At the agency’s own initiative (pure unsolicited ratings) to expand coverage.
Although unsolicited ratings are not commissioned by the rated entity, they are still governed by strict regulatory requirements:
📌 CRAs must disclose whether the rated entity participated in the process
📌 A different colour code must be used to distinguish them
📌 ESMA requires all such ratings to be reviewed, disclosed in advance, and properly supervised
Moreover, these ratings can be used for regulatory purposes, provided they meet quality standards.
📊 According to Article 138 of the Banking Regulation, banks must use solicited ratings unless the EBA confirms that unsolicited ones are of comparable quality—a requirement currently met by all CRAs issuing them.
🏦 Under insurance regulation, both solicited and unsolicited ratings are permitted without restriction by EIOPA.
At EACRA, we believe transparency around the use and regulation of unsolicited credit ratings is essential to support fair and informed financial markets.
🔗 Read the full article below.
