S&P and SNL to supply credit ratings to EU central banks

Standard and PoorsCentral banks in the EU will have access to a wide range of issuer credit data after S&P Capital IQ, the financial information provider, and data firm SNL signed an agreement alongside Deutsche Bundesbank.

The deal is in place for four years, and provides all participating central banks with the ability to share information in centralised databases –the hope being that it will emphasise credit risk analysis efficiency within and across the banks.

Central banks will also have the ability to access financial fundamentals and other market data, analytics and research through S&P Capital IQ’s web-based platform.

As a recognised external credit assessment institution, Standard & Poor’s’ credit ratings and research can be used by national central banks for their submission of eligible assets to the European Central Bank in exchange for credit and liquidity.

“This agreement highlights the importance of Standard & Poor’s credit ratings and research among central bankers, both for the insights they provide as well as the transparency they help enable,” says Mike Chinn, president of S&P Capital IQ and SNL.

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