Credit rating guidelines unveiled

EFAMA, the ESF and the IMA have published an industry guide to address over-reliance on credit rating...

EFAMA, the ESF and the IMA have published an industry guide to address over-reliance on credit ratings. The guidelines have been produced in response to a call from the Financial Stability Forum for investors to address their over-reliance on ratings and to review standards of due diligence and credit analysis when investing in structured credit products. The initial impetus for the guidelines was the "Ten Industry Initiatives to Increase Transparency in the Securitisation Market", an industry-led initiative coordinated by the ESF and first announced in July 2008. Peter De Proft, dire...