ESMA launches today a Central Rating Repository (CEREP) providing information on credit ratings issued by those 15 Credit Rating Agencies (CRAs) which are either registered or certified in the European Union.1 The CEREP database will allow investors to assess for the first time on a single platform the performance and reliability of credit ratings on different types of ratings, asset classes and geo-graphical regions over the time period of choice.
The repository includes standardised statistics on rating activity and the performance of credit ratings, including transition matrices and default rates.
Steven Maijoor, ESMA Chair, said that:
“With making a Central Rating Repository available to the public as of today, ESMA contrib-utes to more transparency on ratings issued and hence improves the protection of investors. CEREP allows the general public to assess the historical performance of credit ratings and helps to evaluate their reliability. Therefore, the launch of CEREP is a major step towards increased transparency with regard to CRAs’ activity.”
CEREP to increase transparency by providing complete and easy-to-access data
The statistical data provided by CEREP are based on historical credit ratings submitted by CRAs2 on a semi-annual basis and which are calculated by CEREP in a standardised manner. The aim of CEREP is:
to enhance transparency by providing complete, standardised and consistent data; to improve investor protection by facilitating the comparison of rating performances of CRAs; to facilitate regulators in assessing developments in CRAs’ activities; and to reduce information asymmetries.
Easy access through ESMA’s website
The wider public can access the information contained within CEREP, through ESMA’s website (www.esma.europa.eu) > Registry and Databases > CEREP or directly through:
Link: http://cerep.esma.europa.eu/cerep-web
The database is free of charge and without prior subscription. It can be customised in terms of the time periods, rating types and geographical region of choice.
CEREP is established in accordance with Article 11.2 of the CRA Regulation (EC) No 1060/2009. It will be updated on a semi-annual basis with statistics covering up to the preceding reporting period, which covers six months lasting from 1 January to 30 June or, from 1 July to 31 December.
ESMA will announce on its website any future updates of CEREP.
1 CEREP provides statistics on those 15 CRAs registered and certified as of 31 October 2011. Currently, however, 16 CRAs are regis-tered or certified in the European Union.
2 The CRAs are responsible for the accuracy and completeness of the data sent.