1. (1)

   A credit rating agency shall provide the FCA, for each class of credit rating, with a high-level description of the range of core models and methodologies used to determine credit ratings.

2. (2)

   A credit rating agency shall provide the FCA with the following information regarding its policies and procedures:

   1. (a)

      information regarding the development, validation and review of its rating methodologies, including at least the information set out in point 1 of Annex VII;

   2. (b)

      information regarding the disclosure of the credit methodologies and descriptions of models and key rating assumptions used in its credit rating activities as set out in point 5 of Part I of Section E of Annex I to Regulation (EC) No 1060/2009.

1. (1)

   A credit rating agency shall provide the FCA with the following information:

   1. (a)

      the rating nomenclatures used for each class of credit rating;

   2. (b)

      the definition of any rating action and statuses used by the credit rating agency;

   3. (c)

      its policies and procedures regarding the issuance of credit ratings, including at least the information set out in point 2 of Annex VII;

   4. (d)

      the terms of reference of any rating committees;

   5. (e)

      a description of the arrangements in place for disclosing a rating decision, including at least the information set out in point 3 of Annex VII;

   6. (f)

      a description of the procedures in place to ensure that a methodology is applied and implemented consistently across classes of credit rating, offices and regions.

2. (2)

   A credit rating agency shall identify any differences between the treatment of unsolicited and solicited ratings in the policies and procedures provided under points (c) and (e) of paragraph 1.

3. (3)

   Where the rating process is regularly audited by an independent third party, a credit rating agency shall provide the FCA with the last audit report.

4. (4)

   A credit rating agency shall also provide the FCA with the following information:

   1. (a)

      details and criteria for the selection of data providers;

   2. (b)

      details on the reliability of internal and external data input into rating models;

   3. (c)

      details of the data sources used.

A credit rating agency shall provide the FCA with information regarding its policies and procedures concerning:

1. (a)

   the monitoring of ratings, identifying any differences between solicited and unsolicited ratings, and including at least the information set out in point 4 of Annex VII;

2. (b)

   the disclosure of the decision to review or change a rating;

3. (c)

   the monitoring of the impact of changes in macroeconomic or financial market conditions on credit ratings as described in Article 8(5) of Regulation (EC) No 1060/2009.