http://www.legislation.gov.uk/eur/2012/447/article/8Commission Delegated Regulation (EU) No 447/2012 of 21 March 2012 supplementing Regulation (EC) No 1060/2009 of the European Parliament and of the Council on credit rating agencies by laying down regulatory technical standards for the assessment of compliance of credit rating methodologies (Text with EEA relevance)Commission Delegated Regulation (EU) No 447/2012Commission Delegated Regulation (EU) No 447/2012 of 21 March 2012 supplementing Regulation (EC) No 1060/2009 of the European Parliament and of the Council on credit rating agencies by laying down regulatory technical standards for the assessment of compliance of credit rating methodologies (Text with EEA relevance)King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012R0447texttext/xmlen2023-12-08Expert Participation2023-07-11Commission Delegated Regulation (EU) No 447/2012 of 21 March 2012 supplementing Regulation (EC) No 1060/2009 of the European Parliament and of the Council on credit rating agencies by laying down regulatory technical standards for the assessment of compliance of credit rating methodologies (Text with EEA relevance)RegulationFinancial Services and Markets Act 2023Sch. 1 Pt. 13s. 1(4)s. 86(3)

Article 8Exemption

In cases where there is limited quantitative evidence to support the predictive power of a credit rating methodology, a credit rating agency shall be exempt from complying with Article 7 of this Regulation if it:

(a)

ensures that credit rating methodologies are sensible predictors of credit worthiness;

(b)

applies internal procedures in a consistent way and over time and across different market segments;

(c)

has processes in place to ensure that systemic credit rating anomalies highlighted by back-testing are identified and are appropriately addressed.