EU Rating Regulation

The EU Rating Regulation establishes a framework to standardize how credit ratings agencies assess the creditworthiness of entities and financial products. Its goal is to increase transparency, reduce conflicts of interest, and improve the accuracy and reliability of ratings used by investors and markets. The regulation sets rules on how agencies should operate, disclose their methodologies, and manage potential biases. Essentially, it aims to create a more trustworthy and consistent rating system across the European Union, helping investors make better-informed decisions and promoting stability in financial markets.