U.S. Markets closed

EU to Strip Five Countries of Some Market Access Rights, FT Says

Polina Noskova

(Bloomberg) -- The European Commission will deem that Canada, Brazil, Singapore, Argentina and Australia don’t regulate credit ratings agencies with the same rigor as the EU, the Financial Times reports citing a document. The decision would withdraw some market access rights of the country, removing a status that makes it possible for European banks to rely on the ratings.

This will be the first time that the access rights have been withdrawn, though temporary permissions for Switzerland were allowed to lapse earlier Credit ratings agencies can also a different pathway, endorsement, to allow individual agencies to get access by setting up units in the EU that vouch for ratings produced elsewhere Head of European compliance at DBRS told the FT that the EC decision to repeal equivalence for Canada will have no impact on the agency’s business.

NOTE: July 19, There’s No Such Thing as Free Access, EU to Warn U.K. on BanksJuly 4, Swiss Standoff with EU Belies Deep Economic Dependence

To contact the reporter on this story: Polina Noskova in New York at pnoskova@bloomberg.net

To contact the editor responsible for this story: Sarah Kopit at skopit@bloomberg.net

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.