REGARDING CREDIT RATING AGENCIES

Regulation (CE) no. 1060/2009 of European Parliament and Council, of September 16, 2009, approving a new legal framework regarding credit rating agencies, has entered into force on December 7th.

Said Regulation sets forth a mandatory system of registration of the agencies which intend to issue ratings to be used by entities established in the E.U. and an endorsement regime regarding credit ratings issued in third countries.

Pursuant to this regulation, the rating agencies shall comply with specific requirements and adopt adequate measures, regarding conflicts of interests, rating quality, transparency, and periodic and ongoing disclosure.

As of 07.12.2010, credit institutions, insurance and reinsurance undertakings, UCITS, and institutions for occupational retirement may use credit ratings for regulatory purposes only if they are issued by credit rating agencies established in the Community and registered in accordance with the Regulation.

The Regulation further recommends that the credit rating agencies apply, on a voluntary basis, the Code of Conduct Fundamentals for credit rating agencies issued by the International Organisation of Securities Commissions (IOSCO Code).

Furthermore, it establishes a supervision system of the activity of credit rating, based on the sound cooperation between the competent national authorities and the Committee of European Securities Regulators - CESR.