EU Statement – ECOSOC Special Meeting: Credit Ratings

Excellencies, colleagues, 

I have the honour of delivering this statement on behalf of the European Union and its Member States.

At the outset, we would like to stress our longstanding belief that preserving the independence, analytical integrity and non-interference with the content of credit ratings and rating methodologies is the best way to ensure their credibility and usefulness.

At the same time, we believe that this should go hand in hand with greater transparency, stronger dialogue and enhanced engagement with developing countries, so that ratings and assessments can better reflect economic realities and support informed investment decisions.

This is in fact not just a belief but a policy choice, enshrined in our legal frameworks, in line with our policy frameworks, and reaffirmed by the Code of Conduct of the International Organisation of Securities Commissions (IOSCO).

Indeed, we consider that the use of rigorous, robust and systematic methodologies is at the heart of the assessments of the credit rating agencies.

Further, to improve the development of better, more transparent sovereign and corporate ratings, it is important to boost the institutional, data and statistical capacity of developing countries to fully engage with credit rating agencies and other financial actors.

In this context, capacity building can contribute to improving public financial management, including debt management practices, as well as the quality, availability and timeliness of fiscal and macroeconomic data. Such improvements may help enhance transparency and credibility, thereby fostering more constructive and informed interactions with credit rating agencies.

In that regard, we also emphasize the importance of fostering peer learning, including on the effect of transformation towards sustainability on sovereign ratings, and identifying good practices among UN Member States.

We also note that, since 2025, progress has been made in fostering more regular dialogue between credit rating agencies and sovereign issuers, as well as in expanding technical assistance and alternative analytical tools.

The European Union welcomes these developments, but believes that more can and should be done to institutionalise structured and continuous engagement between governments, rating agencies, investors and other market actors, beyond the formal rating cycle.

In our view, Member States can strengthen their engagement with rating agencies and financial market participants by investing in stronger national data and statistical systems, improving debt and fiscal transparency, developing dedicated investor relations functions, and ensuring that reform trajectories and resilience-enhancing policies are communicated in a timely and coherent manner. These steps can help reduce information asymmetries and support more informed and forward-looking risk assessments.

The European Union also takes note of ongoing proposals aimed at diversifying the credit assessment ecosystem, including the establishment of an African Credit Rating Agency.

We recognise the potential of such initiatives to help address information gaps and broaden analytical perspectives, while noting that their long-term relevance will depend on strong technical capacity, institutional independence and market credibility.

In closing, we would like to reiterate our support for these principles. By enhancing capacity, data quality and peer exchange, we can collectively advance towards better and more transparent ratings.

I thank you.