{"id":4408,"date":"2020-03-16T13:29:22","date_gmt":"2020-03-16T13:29:22","guid":{"rendered":"https:\/\/www.sportsnewsforyou.com\/?p=4408"},"modified":"2020-03-16T13:29:22","modified_gmt":"2020-03-16T13:29:22","slug":"plans-to-rotate-credit-rating-agencies-to-be-revised","status":"publish","type":"post","link":"https:\/\/googmn.com\/?p=4408","title":{"rendered":"Plans to rotate credit rating agencies to be revised"},"content":{"rendered":"<figure class=\"art\"><\/figure>\n<header>\n<h1>Plans to rotate credit rating agencies to be revised<\/h1>\n<p class=\"subhead\">UK and Germany lead opposition to forcing issuers to change agencies regularly. <\/p>\n<\/header>\n<footer class=\"meta\">\n<p class=\"byline\">European Voice<\/p>\n<\/footer>\n<footer class=\"meta\">\n<p>\n\t\t\tBy\t\t\t<span class=\"byline\"><br \/>\n\t\t\t\t<span class=\"vcard\">Ian Wishart<\/span>\t\t\t<\/span>\n\t\t<\/p>\n<p class=\"timestamp\">3\/31\/12, 8:07 AM CET<\/p>\n<p class=\"updated\">Updated 4\/12\/14, 11:02 PM CET<\/p>\n<\/footer>\n<p>A major part of the European Commission\u2019s plan to clamp down on credit rating agencies could be scrapped after several finance ministers warned that it could be unworkable.<\/p>\n<p>Ministers from several EU member states, meeting in Copenhagen today (31 March), spoke out against the so-called \u2018rotation rule\u2019, which would force companies to change their credit rating agency on a regular basis.<\/p>\n<p>The idea is to increase the level of competition in the rating agency market \u2013 currently dominated by three large agencies \u2013 but the proposal has proved controversial and many countries fear that it would not have the desired effect or have negative consequences.<\/p>\n<p>The UK and Germany are among a group of countries that spoke out against the proposal to force rotation every three to six years.<\/p>\n<p>However, an EU official said that ministers had not completely ruled out bringing in rotation, but were looking at ways to \u201ctweak\u201d it. This could include changing how often agencies would have to be rotated, how many rotations would be needed and how the new rules would be phased in.<\/p>\n<p>\u201cThere is consensus over the goals [of rotation],\u201d the official said. \u201cRotation is not easy to organise in an effective way but it is one of the ideas out there. Some ideas [discussed by ministers] build on rotation, and then there are other ideas. Everyone agrees that the status quo is not tenable.\u201d<\/p>\n<p>Michel Barnier, the European commissioner for the internal market and services, made his proposal to crack down on credit rating agencies, notably the big three of Moody\u2019s, Fitch and Standard and Poor\u2019s, in November. Since then both the European Parliament and member states have been discussing how to alter the draft legislation.<\/p>\n<p>Based on some of the points raised at the meeting of finance ministers today, the Commission will now work with the Parliament and Council of Ministers in order to come up with a compromise solution by the summer.<\/p>\n<p>Denmark\u2019s finance minister Margrethe Vestager, who chaired today\u2019s meeting, said EU member states had \u201cvery great concerns\u201d about the rotation proposal. \u201cThere are very few credit rating agencies who actually have the capacity and the muscle to do the credit rating that we are discussing. A number of ideas have been tabled, but not very concrete ideas. \u201c<\/p>\n<p>Barnier, who also took part in the debate, said that he was \u201copen\u201d to different solutions.<\/p>\n<p>\u201cWe are firm on the principle of more competition and diversity, but open on the modalities of implementation, particularly regarding operational aspects and to avoid unintended consequences,\u201d he said. \u201cThe Commission is ready to consider better ways to achieve the same goal.\u201d&nbsp;<\/p>\n<\/p>\n<footer class=\"content-credits\">\n<h6>Authors:<\/h6>\n<dl class=\"vcard\">\n<dt class=\"credits-author\"><span class=\"vcard\">Ian Wishart<\/span>&nbsp;<\/dt>\n<\/dl>\n<\/footer>\n","protected":false},"excerpt":{"rendered":"<p>Plans to rotate credit rating agencies to be revised UK and Germany lead opposition to forcing issuers to change agencies regularly. European Voice By Ian Wishart 3\/31\/12, 8:07 AM CET Updated 4\/12\/14, 11:02 PM CET A major part of the European Commission\u2019s plan to clamp down on credit rating agencies could be scrapped after several&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4408","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/posts\/4408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/googmn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4408"}],"version-history":[{"count":0,"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/posts\/4408\/revisions"}],"wp:attachment":[{"href":"https:\/\/googmn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/googmn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/googmn.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}