Standard & Poor's has welcomed today's approval by the European Parliament of a new system to register and regulate ratings firms within the EU.
S&P says the initiative should play an important role in building confidence in credit ratings and markets in the region and reassure investors about the quality and integrity of ratings.
President, Deven Sharma, says: "Formal oversight by securities regulators in the EU of ratings firms' policies and processes - combined with the ongoing intensive scrutiny of credit ratings by the market - will mean more transparency and accountability for ratings providers, and greater confidence in ratings."
He says S&P had already adopted a range of its own measures to enhance the transparency, independence and analytical quality of ratings.
This includes the appointment of an ombudsman and the provision of greater information to investors about the assumptions and stress tests behind its ratings opinions.
"We are continuing our dialogue with investors and other users of ratings and are prepared to take further steps to reassure the market about the integrity and quality of the ratings process," adds Sharma.Investment Week
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Consequences could be more severe than in stress tests
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