European Securities and Markets Authority seeks input on private credit ratings risks
Updated
Updated · The Wall Street Journal · Apr 24
European Securities and Markets Authority seeks input on private credit ratings risks
8 articles · Updated · The Wall Street Journal · Apr 24
ESMA has requested comments on the use and risks of restricted subscription and private credit ratings, focusing on private-equity owned life insurers across the EU.
The regulator aims to understand who uses these private ratings, their market role, and how they compare to public ratings, amid concerns about less-transparent, potentially inflated assessments.
Similar concerns have arisen in the U.S., where a 2024 report found inflated private ratings, prompting interest from the Treasury Department and highlighting growing regulatory scrutiny of insurers’ private asset investments.
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