Esma fines Scope Ratings over inconsistency

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By David Freitas
05 Jun 2020

Rating agency Scope beat many European agencies to the punch in adopting new covered bond rating methodology in 2015, which is today considered a standard approach. But the European Securities and Markets Authority (Esma) is fining the agency on the grounds that it failed to apply it consistently and with the regulator’s permission.

According to Esma, Scope Ratings adopted a new covered bond methodology in 2015 that considered the legal framework and resolution regime of a covered bond and a thorough analysis of the covered bond pool, in addition to existing elements of the issuer’s credit strength.

In question was the ...

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