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THE EUROPEAN PARLIAMENT has introduced new rules on when and how credit rating agencies can rate state debts and private firms.
Parliament voted in favour of the legislation today in a bid to improve the stability of financial markets.
The rules mean agencies will only be able to issue unsolicited sovereign debt ratings on set dates, and it will enable private investors to sue the agency that issued the rating for damages if it breaches the rules set out in the legislation.
MEPs also ensured that the ratings are clearer by requiring agencies to explain the key factors underlying them. Ratings must not seek to influence state policies, and agencies themselves must not advocate any policy changes, adds the text. The rules have already been provisionally agreed with the Council.
Over-reliance on ratings
To reduce over-reliance on ratings, MEPs urge credit institutions and investment firms to develop their own rating capacities, to enable them to prepare their own risk assessments. The European Commission should also consider developing a European creditworthiness assessmenst.
A credit rating agency will have to refrain from issuing ratings, or disclose that its ratings may be affected, if a shareholder or member holding 10 % of the voting rights in that agency has invested in the rated entity.
The new rules will also bar anyone from simultaneously holding stakes of more than 5% in more than one credit rating agency, unless the agencies concerned belong to the same group.
The Domenici report on the regulation was adopted by 579 votes to 58, with 60 abstentions and that on the directive by 599 votes to 27, with 68 abstentions.
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They’re also going to need a replacement-replacement bus service contract, in case the replacement bus service goes on strike or has operational issues.
And then of course they’ll need a replacement-replacement-replacement bus service…….
Did Mr Bean take over irish rail a couple of weeks ago?
Would this mean more public transport?
Would they have more facilities for wheelchair assesibileties
@Louise Ní Riain: Not so long ago they were broke and crying out for cash . So what has changed?
@Louise Ní Riain: No, at the moment when there is work on the train line, Dublin Bus drive from staition to station to make sure nobody is stuck. Instead they’re going to get a private service to do it.
I’d be very happy if they also improved the already dismal inter City bus service. I traveled to Sligo recently, from Galway. Took almost 3 hours to get there. If the bus was put through the NCT, it would not have been deemed save. A total upgrade has to happen.
Be great if they’d put new track in or have a commuter plan or do anything with some foresight.
have your say