The Financial Conduct Authority (FCA) recently released its Credit Rating Agency (CRA) Market Share Report for the year 2022, building upon the inaugural report from the previous year. The FCA, in accordance with Regulation (EC) No 1060/2009 and subsequent amendments, oversees UK CRAs to ensure compliance and foster healthy competition within the industry.
Regulatory Framework and Market Competition
The CRA Regulation, designed to enhance competition among credit rating agencies, emphasizes the importance of diversifying the use of CRAs by issuers and related third parties. Article 8d encourages the selection of smaller CRAs by suggesting that, when appointing 2 or more CRAs, one of them should have no more than 10% of the total market share. This requirement aims to create a more balanced playing field and prevent undue concentration in the industry.
Market Overview: Key Findings
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Conclusion
The Credit Rating Agency UK Market Share Report for 2022 provides valuable insights into the dynamics of the industry, highlighting trends, market concentration, and the regulatory efforts to enhance competition. As the FCA continues to monitor and regulate the sector, stakeholders are encouraged to use this report as a key reference point in their decision-making processes.
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