regulation. Credit rating regulation is justified only for supervisory purposes due to the stability of the financial market. Although the rotation rule increases the independence of credit rating agencies, it [...] it also distorts competition, reduces the quality of ratings and thus has a negative impact on growth. The rule on double ratings for structured finance instruments jeopardizes the stability of the financial
By upgrading a rating to “investment-grade rating”, public guarantees (or credits) can lead to a situation in which investors subscribe project bonds and thus encourage the participation of private investors
Though the centralisation of the supervision of credit rating agencies with ESMA is justifiable, it is not absolutely necessary. At the same time, it is questionable whether or not it is inn line with [...] law. Therefore, the maintenance of federal supervisory structures for ESMA and for the supervision rating agencies is a better solution.
should apply only to credit rating agencies whose ratings are to be used in the calculation by financial service providers of necessary own funds. Ratings of credit rating agency from outside the EU should
with a constant redemption value. Banning money market funds from soliciting external credit ratings from rating agencies obstructs the efficient allocation of capital.