PARIS, March 19, 2019 /CNW/ -- Beyond Ratings is pleased to announce that the European Securities and Markets Authority (ESMA) has accredited it to issue ratings for central, regional, and local governments as well as (both supranational and national) policy-driven financial institutions.
Beyond Ratings is a privately-owned financial services firm that specializes in ESG (environmental, social, and governance) analysis.
ESMA is the single direct supervisor of credit rating agencies (CRAs) in Europe. Its mandate stems from EU CRA regulation, which ensures a common framework and minimum quality standards for credit ratings issued in the European Union.
"We believe ESMA accreditation validates our central proposition that ESG analysis is essential to evaluate all manner of risks, including credit risks of sovereigns, sub sovereigns, and development banks," said Rodolphe Bocquet, CEO and co-founder of Beyond Ratings. "ESMA registration has been an objective since the firm's founding in 2014 and will enable us to expand our ESG platform for positive finance."
Elie Hériard-Dubreuil, Managing Director who oversaw the ESMA application, comments: "We believe that our ratings will enable investors to consider a broader set of risk factors. We maintain that investors who ignore ESG do so at their peril."
On 18 March 2019, the European Securities and Markets Authority (ESMA), the EU's direct supervisor of credit rating agencies (CRAs), announced that it registered Beyond Ratings (BR) as a credit rating agency under Regulation (EC) No 1060/2009 of the Council of 16 September 2009 on credit rating agencies with immediate effect. Further information regarding CRA regulation can be found here (https://ec.europa.eu/info/law/credit-rating-agencies-regulation-ec-no-1060-2009_en)
Based in Paris, France, and incorporated in 2014, Beyond Ratings provides innovative services to assist the financial sector in the transition towards sustainable trajectories. As a CRA, BR will be able to issue ratings to public issuers (sovereign, local & regional governments, and policy-driven financial institutions), based on methodologies which systematically integrate ESG factors into the analysis framework
Sovereign, supranational, and agency (SSA) debt is the largest and most liquid compartment of global financial securities. As these instruments finance public policies, their influence can extend beyond classic economic impact (e.g. green and social bonds). The public debt sector is therefore a prime candidate for ESG-augmented credit ratings