Translation of "External rating" in German

The very intensive debate on external rating made that abundantly clear.

Dependence on bank finance is even higher for unlisted SMEs without an external rating.

There is too much dependence on external credit rating agencies and an oligopoly exists in the sector.

Such assets shall constitute eligible collateral for the purposes of Eurosystem monetary policy operations, irrespective of their external credit rating.

In the context of an internal or external rating, the reliability – the credit risk – of single debtors is calculated.

They generally have an external rating of A or better.

The table below shows the relationship between the internal rating notches and the ratings used by external rating agencies.

For example, a sale following a downgrade in a credit rating by an external rating agency would not necessarily raise a question about the entity’s intention to hold other investments to maturity if the downgrade provides evidence of a significant deterioration in the issuer’s creditworthiness judged by reference to the credit rating at initial recognition.

The recent financial crisis has drawn attention to three key problems in the area of rating agencies, which are the lack of economic competition, the excessive dependency of the regulatory framework on external rating assessments, and the fact that the rating agencies provide no guarantee for their ratings.

In particular, it is important that she managed, by achieving a very broad majority in committee, to ensure that the requirements of the small institutions - the savings banks, the cooperative banks, the small and medium-sized businesses - are also given due consideration in this important legislative project and that what is called internal rating, i.e. the internal assessment of credit risks, will be given the same status as external rating, as proposed by the Basel Committee.

It will become normal, and the quintessential difference between external and internal rating will be that internal rating will, in the Member States, be subject to financial supervision, whereas external rating will not.

In view of Basel II’s recognition of external rating, and of the consequences resulting from it, the message we are giving now to the Commission is not a matter for indifference.

What is at issue is whether we can carry on in future with only internal rating being supervised, while external rating is not.

We want to advocate the introduction of a European quality mark, or, best of all, a global one, to accompany Basel II, and we want a debate on internal and external rating.

The Basel Committee's proposals only concern the large banks and external rating, while we believe it is necessary to broaden them to cover the small banks and to include internal rating.

One reason that is so important is that purely external rating would have significantly increased the costs of loans for small and medium-sized businesses.

Institutions shall reflect the impact of material risks that could occur during the interval between the hedge 's maturity and the liquidity horizon as well as the potential for significant basis risks in hedging strategies by product , seniority in the capital structure , internal or external rating , maturity , vintage and other differences in the instruments .

The Committee would reiterate the scepticism it already expressed in its opinion of 12 March 2012 on rating agencies, to the effect that not even market participants' own risk assessment and less reliance on external rating agencies guarantees objectivity in the decisions made by financial market participants or the inclusion of all decisive aspects – in relation to the consequences of the assessment.

The Regulation stipulates that banks with an external rating from an authorised credit rating agency shall be assigned to a risk class as follows:

Furthermore, in particular smaller investors often will lack the capability to critically review an external rating provided by a credit rating agency.