After admitting asset-backed securities (ABS) ratings of Scope RatingsEuropean rating agency, into the Eurosystem last May and the recognition of the company as a new external credit rating agency (ECAI) in November 2023, the European Central Bank planned to start use ratings of the Scope Ratings agency from 16 December 2024 to evaluate the credit quality of negotiable assets to be used as collateral in monetary policy operations. This is the final step in integrating Scope into the Eurosystem Credit Assessment Framework (ECAF).
The role of Scope Ratings
From 16 December Scope credit ratings for marketable securities will be operationally available in the Eurosystem. In detail, Scope is the only European rating agency whose ratings will be used for the monetary policy operations of the ECB and the central banks of the euro area countries.
Implications for banks
The acceptance of Scope ratings provides the ECB and market participants with a broader set of Credit Opinions and broadens the pool of eligible collateral as Scope rates assets and debt instruments not rated by other agencies.
Information about ECAF
The primary objective of the ECAF is to ensure the creditworthiness of counterparties and the collateral used in Eurosystem credit operations. The ECAF aims to harmonize credit assessment standards across the euro area, ensuring consistency and fairness in how collateral is assessed. With ECAF accreditation, Scope’s credit ratings can be used to meet the credit quality requirements of marketable assets eligible as collateral in Eurosystem monetary policy operations.
