Today Nordic Credit Rating AS (NCR) was registered as a credit rating agency by the European Securities and Markets Authority (ESMA) and EFTA Surveillance Authority (ESA). This allows NCR to fulfil its mission to provide credit ratings to Nordic corporations and financial institutions.
“We are very happy to be registered with ESA and ESMA and that we can now start offering our rating services in the Nordic markets”, says Gustav Liedgren, CEO of NCR and adds “Our ratings will add transparency to the bond markets and that will ultimately benefit all market participants.”
Ragnar Sjoner, Chairman of the Board comments: “I want to congratulate the team on an outstanding job over the last year. While we are just at the start of our operations, this is an important milestone for NCR and for the Nordic bond markets.”
The CRA Regulation seeks to ensure that credit ratings issued in the European Union respect minimum standards of quality, transparency and independence by ensuring that only companies registered by ESMA as CRAs may lawfully issue credit ratings. ESMA’s registration means that NCR’s credit ratings can be used for regulatory purposes by financial counterparties including credit institutions and investment firms.
Gustav Liedgren, CEO: +46 736 49 65 43
Ragnar Sjoner, Chairman of the board: +47 928 21 998
- On 27 July 2018 the European Securities and Markets Authority (ESMA) and EFTA Surveillance Authority (ESA) announced that it has registered Nordic Credit Rating AS (NCR) as a credit rating agency (CRA) under Regulation (EC) No 1060/2009 of the Council of 16 September 2009 on credit rating agencies with effect. ESMA is the European Union’s direct supervisor of CRAs. ESA is the regulatory body for countries in the European Free Trade Association and monitors compliance with European Economic Area rules such that these countries can participate in the European internal market.
- Nordic Credit Rating AS was incorporated in 2016 and initiated its operations in 2017. As a CRA, NCR will offer credit analysis to corporate entities and financial institutions. The rated entities will pay to obtain a credit rating, a so called “issuer-pays model”, which is the market standard. NCR maintains strict separation between its analytical and commercial activities, monitored by its internal compliance staff.
- NCR is owned by 25 Nordic banks and financial institutions with no single shareholder holding more than 5%. NCR was set up to lower the threshold for issuers of bonds in the Nordic region to obtain a credit rating. Today there are over 500 entities in the Nordic region with outstanding bonds, but no public credit rating.
- NCR has eight employees and is based in Oslo and Stockholm. Its employees have experience from large CRAs, banks, asset managers and consultants. NCR’s local presence and language skills are important factors in understanding the conditions which are driving credit quality for issuers based in the region. NCR will publish insightful and independent credit analysis to support investors’ in-house capabilities.
- European Securities and Markets Authority (ESMA) is the European Union’s direct supervisor of credit rating agencies. The applicable regulation can be accessed here.