ESMA launches call for evidence on restricted subscription and private credit ratings

The ESMA's call for evidence on 'restricted subscription' and 'private' credit ratings signals increased regulatory scrutiny of less transparent credit assessment methodologies. Market participants, issuers, and intermediaries should closely monitor the outcome of this initiative, as it could precede future regulatory adjustments impacting the disclosure and use of such ratings, with potential implications for liquidity and price formation of financial instruments relying on them as benchmarks or eligibility criteria.