Brazil
Legislative framework
In April 2012, the Commisssao de Valores Mobiliarios (“CVM Brazil”) adopted the requirements for credit rating agencies domiciled in Brazil.
The following agencies are registered with CVM currently:
|
Name of CRA |
Abbreviation |
|
Austin Rating |
Austin |
|
Fitch Ratings |
Fitch |
|
LF Rating |
LF_BR |
|
Liberum |
Liberum |
|
Moody’s |
Moody’s |
|
SR Rating |
SR_BR |
|
Standard and Poor’s |
S&P |
According to the website of AM Best, AM Best is also recognized in Brazil, but we were not able to track this information at the CVM website.
CRAs registered with CVM need to yearly update the reference documents. We have used these documents in order to carry out our research as they include a.o. the following information:
- Number of ratings outstanding specified according to asset classes
- Revenues breakdown according to asset classes
- Information on the number of employees.
Relations with EU law
In April 2012, the European Securities and Markets Authority (“ESMA”) announced that it considers the regulatory framework for CRAs to be in line the EU rules. Since then, ratings issued by global CRAs in Brazil can be endorsed by the EU registered agencies.
In April 2014, the European Commission adopted the decision on the recognition of the legal and supervisory framework of Brazil as equivalent to the requirement of the EU Regulation on CRAs. Since then, CRAs registered with CVM in Brazil can get certified with ESMA – at November 2014, no Brazilian CRA was certified in Europe.
For RATINGPLATFORM registered users, the following content is available: ECAI status and indicative mapping of Brazilian national scale ratings to the global international rating scale and a list of usefull links in Brazil