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27 April 2012

ESMA approves credit ratings from Brazil for use in the EU


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ESMA announced that it considers the regulatory framework for the credit rating agencies of Brazil to be in line with European Union rules. This allows European financial institutions to continue using credit ratings issued in Brazil for regulatory purposes after 30 April, 2012.


In order to facilitate the exchange of regulatory information, and as a precondition to endorsement, ESMA has also entered into a cooperation agreement for the supervision of CRAs with the Securities and Exchange Commission of Brazil (Comissăo de Valores Mobiliários – CVM).

Majority of CRA non-EU regimes endorsed

Following the endorsement decisions already adopted by ESMA concerning Japan, the USA, Canada, Australia, Hong Kong, Singapore, Mexico and Argentina, the majority of non-EU issued credit ratings are now recognised by ESMA to be subject to EU-equivalent regulation.

However, there remain some jurisdictions whose legal framework does not currently meet EU requirements. From 30 April it will only be possible to use EU-endorsed ratings for regulatory purposes. ESMA advises European financial institutions to pay particular attention to whether the credit ratings issued outside the EU that they use are EU-endorsed ratings or not.

Press release



© ESMA


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