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The European Securities and Markets Authority (ESMA) has published its annual list of EU registered CRAs’ market share calculations for the purposes of Article 8d of the CRA Regulation.
ESMA’s market share calculations are designed to help issuers or related third party to determine whether a CRA with no more than 10% of the total market share could be able to rate their issuance or entity. They are made on the basis of the annual turnover generated from credit rating activities and ancillary services by each EU registered CRA at group level during calendar year 2013.
Article 8d states that where an issuer or related third party (RTP) is considering appointing at least two CRAs, they must consider appointing one with no more than 10% of the total market share. In the event that the issuer or RTP decides not to appoint one of these smaller CRAs, they must document their decision. The obligations in Article 8d are supervised and enforced at national level.
