ESMA launches call for evidence on restricted subscription and private credit ratings
ESMA has launched a call for evidence to gather views on the purposes, market practices, needs, and risks associated with restricted subscription and private credit ratings, as their use increases.
— esma
The ESMA's call for evidence on 'restricted subscription' and 'private' credit ratings signals increased regulatory scrutiny of less transparent credit assessment methodologies. Market participants, issuers, and intermediaries should closely monitor the outcome of this initiative, as it could precede future regulatory adjustments impacting the disclosure and use of such ratings, with potential implications for liquidity and price formation of financial instruments relying on them as benchmarks or eligibility criteria.