ECB to Incorporate Scope Ratings in Credit Assessment for Collateral Eligibility
4 NOV, 2024
The European Central Bank (ECB) has set 16 December 2024 as the official start date for using Scope Ratings to assess the credit quality of marketable assets accepted as collateral in its monetary policy operations. This final integration step solidifies Scope's place in the Eurosystem Credit Assessment Framework (ECAF).
Scope Ratings, following its acceptance into the ECAF last year and the inclusion of its asset-backed securities (ABS) ratings in May 2024, will now have its credit ratings for marketable securities recognized within the Eurosystem. This means that Scope is the only European credit rating agency whose ratings are incorporated by the ECB and central banks across the Eurozone for monetary policy purposes.
For banks, Scope’s acceptance into the ECAF broadens the range of eligible collateral by adding credit ratings for assets and instruments not covered by other agencies, giving institutions expanded options in their collateral management.
The ECAF aims to ensure consistency in creditworthiness assessments across the Eurozone, harmonizing standards for counterparties and collateral used in ECB credit operations. By integrating Scope’s ratings, the ECB enhances its ability to evaluate a broader set of marketable assets in its monetary policy framework, bolstering its collateral assessment standards and supporting market stability.
