Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

SECTION 6 Issuance and review of credit ratings

Article 16 Development, validation, review and disclosure of rating methodologies

  1. (1)

    A credit rating agency shall provide the FCA, for each class of credit rating, with a high-level description of the range of core models and methodologies used to determine credit ratings.

  2. (2)

    A credit rating agency shall provide the FCA with the following information regarding its policies and procedures:

    1. (a)

      information regarding the development, validation and review of its rating methodologies, including at least the information set out in point 1 of Annex VII;

    2. (b)

      information regarding the disclosure of the credit methodologies and descriptions of models and key rating assumptions used in its credit rating activities as set out in point 5 of Part I of Section E of Annex I to Regulation (EC) No 1060/2009.