Need for a Global Regulatory Framework for Credit Ratings: S&P

-- Regulators should consider if issuers of structured securities should be required to disclose publicly information about collateral pools that is currently provided to ratings firms confidentially.

-- Ratings policies should be applied clearly and consistently, to minimize surprises when and if ratings are changed.

-- There should be transparency of communication between issuers and ratings firms, for instance when issuers request a rating on a structured security.

-- Ratings performance statistics, including comparability of ratings across asset classes and geographies, should be publicly disclosed, to help investors assess ratings quality.

-- There should be a competitive market for ratings, with more and varying views on credit quality from qualified providers. Criteria for registering ratings firms should be transparent and regulators should review the analytical and financial resources of each applicant.

-- Regulators should conduct robust, periodic inspections of how ratings firms are complying with their processes and policies and how they are following through on their commitments.

"These are some of the principles that we believe should guide thinking on the future regulatory framework for ratings firms," Mr. Sharma said.

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(This is press release of Standard & Poor's)



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