DBRS Comments on its Commitment to the European Market and New European Regulation on Credit Rating Agencies

DBRS welcomes the new European regulatory framework for credit rating agencies (EU CRA Regulation).

DBRS currently maintains ratings on more than 43,000 securities in 35 countries around the globe. It has broad market acceptance and regulatory recognition, including External Credit Assessment Institution (ECAI) in the European Union (EU), Switzerland, the United States and Canada. DBRS is very committed to the European market and provides ratings on European corporate issuers, financial institutions and structured finance transactions.

DBRS believes that, in conjunction with market scrutiny, formal regulatory oversight of CRAs in the EU will help increase transparency and ensure accountability regarding the integrity and independence of CRA operations. CRAs play an important capital markets and regulatory function. Credit ratings continue to provide an independent point of reference for investors, issuers, regulators and others.

The Code of Conduct Fundamentals for Credit Rating Agencies, developed by the International Organization of Securities Commissions (IOSCO Code), serves as a starting point for oversight in the new EU CRA Regulation. DBRS has adopted and complies with the IOSCO Code, which is a globally recognized framework designed to improve investor protection and the fairness, efficiency and transparency of the securities markets and to reduce systematic risk.

DBRS plans to meet the new European regulation within the timelines as required and looks forward to discussing the rules and their practical application with EU securities regulators.

DBRS is a global rating agency with its headquarters in Toronto and offices in New York and Chicago.