The European Securities and Markets Authority (Esma), the body overseeing the financial markets of the European Union, has imposed on Moody’s German branch a total fine of 2.1 million euros for four violations of the European regulation on rating agencies (Credit Rating Agencies Regulation, Cra).
According to Esma, the German branch of the rating agency submitted incomplete, inaccurate, and outdated data to the authority, failing to meet the reporting obligations required by European legislation.
STATEMENTS FROM ESMA
“Moody’s Germany violated the Cra Regulation by not providing Esma with complete, accurate, and up-to-date data,” said Esma Chair Verena Ross. “Reliable and high-quality reporting is essential to identify risks and ensure transparency in the European Union’s financial markets. Esma will continue to monitor that rating agencies fulfill their responsibilities and have adequate control systems in place.”
MOODY’S ANOMALIES IN GERMANY
The authority specifies that the irregularities concern exclusively the regulatory data submitted by Moody’s Germany to Esma – also on behalf of other group companies – and subsequently published on the European authority’s central platform. The anomalies, Esma emphasizes, had no impact on the credit ratings published by the agency.
The investigation also revealed deficiencies in the company’s regulatory reporting system, including gaps in internal policies, procedures, and control mechanisms. According to Esma, the violations were caused by negligence on the part of Moody’s Germany.
