Commission Implementing Regulation (EU) 2020/744 of 4 June 2020 on amending Implementing Regulation (EU) 2016/1800 laying down implementing technical standards with regard to the allocation of credit assessments of external credit assessment institutions to an objective scale of credit quality steps in accordance with Directive 2009/138/EC of the European Parliament and of the Council (Text with EEA relevance)
Date: 2020-06-04
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: credit rating, financial legislation, financial requirements, financial solvency, financial supervision, insurance, market supervision, outsourcing, technical standard








L_2020176EN.01000401.xml










5.6.2020   


EN


Official Journal of the European Union


L 176/4








            COMMISSION IMPLEMENTING REGULATION (EU) 2020/744
of 4 June 2020
         
on amending Implementing Regulation (EU) 2016/1800 laying down implementing technical standards with regard to the allocation of credit assessments of external credit assessment institutions to an objective scale of credit quality steps in accordance with Directive 2009/138/EC of the European Parliament and of the Council
(Text with EEA relevance)


THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,


Having regard to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (1), and in particular Article 109a(1) thereof,

Whereas:







(1)


Commission Implementing Regulation (EU) 2016/1800 (2) specifies, among others, in its Annex, the correspondence of the relevant credit assessments issued by an external credit assessment institution (‘ECAI’) to the credit quality steps set out in Section 2 of Chapter I of Title I of Commission Delegated Regulation (EU) 2015/35 (3) (‘External credit assessments’).












(2)


Following the latest amendments, by Commission Implementing Regulation (EU) 2018/633 (4), to the Annex to Implementing Regulation (EU) 2016/1800 the quantitative and qualitative factors underpinning the credit assessments of some mappings in the Annex to Implementing Regulation (EU) 2016/1800 have changed. In addition, some ECAIs have extended their credit assessments to new market segments, resulting in new rating scales and new credit rating types. It is therefore necessary to update the mappings of the ECAIs concerned.












(3)


Since the adoption of Implementing Regulation (EU) 2018/633, another credit rating agency has been registered in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council (5). As Article 136(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (6) requires the specification of mappings for all ECAIs, it is necessary to provide a mapping for that newly registered ECAI. The credit assessments applied by the newly registered ECAI are based on the same methodology as those applied by its parent company, a third country ECAI for which a mapping had already been established. It is therefore appropriate in this specific case that the mapping for the newly registered ECAI mirrors the mapping established for that third country ECAI.












(4)


This Regulation is based on the draft implementing technical standards submitted by the European Banking Authority (the EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA) jointly (the European Supervisory Authorities) to the Commission.












(5)


The European Supervisory Authorities have conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council (7); the opinion of the Securities and Markets Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council (8); and the opinion of the Insurance and Reinsurance Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council (9).












(6)


Implementing Regulation (EU) 2016/1800 should therefore be amended accordingly,





HAS ADOPTED THIS REGULATION:



Article 1

Amendment to Implementing Regulation (EU) 2016/1800

The Annex to Implementing Regulation (EU) 2016/1800 is replaced by the text in the Annex to this Regulation.


Article 2

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.




This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 4 June 2020.


For the Commission


The President

Ursula VON DER LEYEN
            





(1)  
            OJ L 335, 17.12.2009, p. 1.

(2)  Commission Implementing Regulation (EU) 2016/1800 of 11 October 2016 laying down implementing technical standards with regard to the allocation of credit assessments of external credit assessment institutions to an objective scale of credit quality steps in accordance with Directive 2009/138/EC of the European Parliament and of the Council (OJ L 275, 12.10.2016, p. 19).

(3)  Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 12, 17.1.2015, p. 1).

(4)  Commission Implementing Regulation (EU) 2018/633 of 24 April 2018 amending Implementing Regulation (EU) 2016/1800 laying down implementing technical standards with regard to the allocation of credit assessments of external credit assessment institutions to an objective scale of credit quality steps in accordance with Directive 2009/138/EC of the European Parliament and of the Council (OJ L 105, 25.4.2018, p. 6)

(5)  Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (OJ L 302, 17.11.2009, p. 1).

(6)  Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).

(7)  Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).

(8)  Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).

(9)  Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48).




ANNEX



‘ANNEX

Allocation of credit assessments of external credit assessment institutions to an objective scale of credit quality steps in accordance with Directive 2009/138/EC














Credit quality step




0




1




2




3




4




5




6







ACRA Europe a.s (formerly European Rating Agency a.s.)







Global long-term rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Global short-term rating scale



 



S1



 



S2




S3, S4, NS



 


 






AM Best Europe-Rating Services Ltd.







Long-term issuer credit ratings scale




aaa




aa, aa-




a
+
, a, a-




bbb
+
, bbb, bbb-




bb
+
, bb, bb-




b
+
, b, b-




ccc
+
, ccc, ccc-, cc, c, d, e, f, s






Long-term issue ratings scale




aaa




aa, aa-




a
+
, a, a-




bbb
+
, bbb, bbb-




bb
+
, bb, bb-




b
+
, b, b-




ccc
+
, ccc, ccc-, cc, c, d, s






Financial strength ratings scale



 



A
++
, A
+




A, A-




B
++
, B
+




B, B-




C
++
, C
+




C, C-, D, E, F, S






Short-term issuer ratings scale



 



AMB-1
+




AMB-1-




AMB-2,


AMB-3




AMB- 4, d, e, f, s



 


 





Short-term issue ratings scale



 



AMB-1
+




AMB-1-




AMB-2,


AMB-3




AMB- 4, d, s



 


 






ARC Ratings S.A.







Medium and long-term issuers rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Medium and long-term issues rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Short-term issuers rating scale



 



A-1
+




A-1




A-2, A-3




B, C, D



 


 





Short-term issues rating scale



 



A-1
+




A-1




A-2, A-3




B, C, D



 


 






ASSEKURATA Assekuranz Rating-Agentur GmbH







Long-term credit rating scale




AAA




AA




A




BBB




BB




B




CCC, CC/C, D






Short-term corporate rating scale



 



A
++




A



 



B, C, D



 


 






Axesor Risk Management SL







Global rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D, E







Banque de France







Global long-term issuer credit ratings scale



 



3
++




3
+
, 3




4
+




4, 5
+




5, 6




7, 8, 9, P







BCRA – Credit Rating Agency AD







Global long-term ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Global short-term ratings scale



 



A-1
+




A-1




A-2, A-3




B, C, D



 


 





Pension-insurance company long-term scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Pension-insurance company short-term scale



 



A-1
+




A-1




A-2, A-3




B, C, D



 


 





Pension fund long-term scale




AAA pf




AA pf




A pf




BBB pf




BB pf




B pf




C pf






Guarantee fund long-term scale




AAA




AA




A




BBB




BB




B




C, D






Guarantee fund short-term scale



 



A-1
+




A-1




A-2, A-3




B, C, D



 


 






Capital Intelligence Ratings Ltd







International long-term issuer rating scale




AAA




AA




A




BBB




BB




B




C, RS, SD, D






International long-term issue rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






International long-term insurer financial strength rating scale




AAA




AA




A




BBB




BB




B




C,RS, SD, D






International short-term issuer rating scale



 



A1
+




A1




A2, A3




B, C, RS, SD, D



 


 





International short-term issue rating scale



 



A1
+




A1




A2, A3




B, C, D



 


 





International short-term insurer financial strength rating scale



 



A1
+




A1




A2, A3




B, C, RS, SD, D



 


 






Cerved Rating Agency S.p.A.







Corporate long-term rating scale




A
1.1




A
1.2
, A
1.3




A
2.1
, A
2.2
, A
3.1




B
1.1
, B
1.2




B
2.1
, B
2.2




C
1.1




C
1.2
, C
2.1







Creditreform Rating AG







Long-term rating scale




AAA




AA




A



 



BBB




BB




B, C, SD, D







CRIF Ratings S.r. l.







Long-term issuer rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D1S, D






Long-term issue rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, DS






Short-term issuer rating scale



 



IG-1



 



IG-2




SIG-1, SIG-2, SIG-3, SIG-4



 


 





Short-term issue rating scale



 



IG-1



 



IG-2




SIG-1, SIG-2, SIG-3, SIG-4



 


 






Dagong Europe Credit Rating







Long-term credit rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Short-term credit rating scale



 



A-1



 



A-2, A-3




B, C, D



 


 






DBRS Ratings Limited







Long-term obligations rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Commercial paper and short-term debt rating scale



 



R-1 H, R-1 M




R-1 L




R-2, R-3




R-4, R-5, D



 


 





Financial Strength rating scale



 



AAA, AA




A




BBB




BB




B




CCC, CC, C, R







Egan-Jones Ratings Co.







Long-term credit rating scale




AAA




AA




A




BBB




BB




B




CCC,CC, C, D






Short-term credit rating scale



 



A-1
+




A-1




A-2




A-3, B, C, D



 


 






Euler Hermes Rating GmbH







Global long-term rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, SD, D







EuroRating Sp. z o.o.







Global long-term rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D







Fitch Ratings







Long-term issuer default ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, RD, D






Corporate finance obligations – Long-term ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, C






Long-term international IFS ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, C






Derivative counterparty ratings scale



 



AAA dcr, AA dcr




A dcr




BBB dcr




BB dcr




B dcr




CCC dcr, CC dcr, C dcr






Short-term rating scale



 



F1
+




F1




F2, F3




B, C, RD, D



 


 





Short-term IFS ratings scale



 



F1
+




F1




F2, F3




B, C



 


 






GBB-Rating Gesellschaft für Bonitätsbeurteilung mbH







Global long-term rating scale




AAA




AA



 



A, BBB




BB




B




CCC, CC, C, D







HR Ratings de México, S.A. de C. V.







Global long-term rating scale




HR AAA(G)




HR AA(G)




HR A(G)




HR BBB(G)




HR BB(G)




HR B(G)




HR C(G)/HR D(G)






Global short-term rating scale




HR
+1
(G)




HR1(G)




HR2(G)




HR3(G)




HR4(G), HR5(G), HR D(G)



 


 






ICAP Group S.A







Global long-term rating scale



 


 



AA, A




BB, B




C, D




E, F




G, H







INC Rating Sp. z o.o.







Long-term issuer credit rating scale



 



AA




A




BBB




BB




B




CCC,CC, C, D







Japan Credit Rating Agency Ltd







Long-term issuer ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, LD, D






Long-term issue ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Short-term issuer ratings scale



 



J-1
+




J-1




J-2




J-3, NJ, LD, D



 


 





Short-term issue credit ratings scale



 



J-1
+




J-1




J-2




J-3, NJ, D



 


 






Kroll Bond Rating Agency







Long-term credit rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Short-term credit rating scale



 



K1
+




K1




K2, K3




B, C, D



 


 






Kroll Bond Rating Agency Europe







Long-term credit rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Short-term credit rating scale



 



K1
+




K1




K2, K3




B, C, D



 


 






modeFinance S.r.l.







Global long-term rating scale




A1




A2




A3




B1




B2




B3




C1, C2, C3, D







Moody’s Investors Service







Global long-term rating scale




Aaa




Aa




A




Baa




Ba




B




Caa, Ca, C






Global short-term rating scale



 



P-1




P-2




P-3




NP



 


 






QIVALIO SAS (formerly Spread Research)







Global long-term rating scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Global short-term rating scale



 



SR0



 



SR1, SR2




SR3, SR4, SR5, SRD



 


 






Rating-Agentur Expert RA GmbH







International credit rating scale




AAA




AA




A




BBB




BB




B




CCC,CC, C, D, E






International reliability rating scale




AAA




AA




A




BBB




BB




B




CCC,CC, C, D, E







Scope Ratings AG







Long-term rating scale




AAA




AA




A




BBB




BB




B




CCC, CC,C, D






Short-term rating scale



 



S-1
+




S-1




S-2




S-3, S-4



 


 






S&P Global Ratings







Long-term issuer credit ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, R, SD/D






Long-term issue credit ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D






Insurer financial strength ratings scale




AAA




AA




A




BBB




BB




B




CCC, CC, SD/D, R






Mid-Market Evaluation ratings scale



 


 



MM1




MM2




MM3, MM4




MM5, MM6




MM7, MM8, MMD






Short-term issuer credit ratings scale



 



A-1
+




A-1




A-2, A-3




B, C, R, SD/D



 


 





Short-term issue credit ratings scale



 



A-1
+




A-1




A-2, A-3




B, C, D



 


 






The Economist Intelligence Unit Ltd







Sovereign rating band scale




AAA




AA




A




BBB




BB




B




CCC, CC, C, D







            ’