Regulation on regulatory technical standards for the assessment of compliance of credit rating methodologies

This procedure establishes technical standards to ensure that credit rating agencies follow consistent and transparent methods when assessing the creditworthiness of entities. It aims to improve the reliability of ratings and protect the stability of the financial system by ensuring compliance with EU regulations.

This affects credit rating agencies and financial institutions that rely on these ratings for investment decisions. It introduces stricter oversight on how rating methodologies are developed and audited.