modeFinance SRL, s-peek owner, registered by ESMA as credit rating agency
ESMA approves modeFinance as a Credit Rating Agency
The European Securities and Markets Authority (ESMA) has formally approved the registration of modeFinance S.r.l., owner of s-peek, as a credit rating agency (CRA) under Article 16 of the CRA Regulation.
With such Registration, Italy based modeFinance Srl is allowed to issue corporate credit ratings of non-financial corporations, public and/or distributed via subscription from July 10th, 2015. modeFinance will issue such ratings on a subscriber-pays model (the ratings are paid by the subscribers and not by the rated entities).
The Registration was approved by ESMA upon an intensive period of requirement examinations such as transparency, governance and avoidance of conflicts of interest; in order to comply with such requirements, modeFinance adopted and implemented strict and rigorous internal policies and procedures.
In addition, another fundamental registration requirement is to rely on methodologies that are rigorous, systematic, continuative and subject to validation based on historical experience.
Corporate ratings issued by modeFinance in compliance with the CRA Regulations are the result of two methodologies: the first, purely quantitative, is the “MORE” Methodology, widely tested during scoring activity and included into s-peek; the second methodology implies the intervention of modeFinance team of rating analysts, which is responsible for the activity of issuance and credit rating monitoring.
modeFinance credit ratings, issued in compliance to the CRA Regulation may be used for regulatory purposes in any country of the European Union. modeFinance is now recognised as an ECAI (External Credit Assessment Institution) according to art. 135(2) of the Capital Requirements Regulation.
ModeFinance is a young company, spinoff of the University of Trieste – Italy; the two CEOs Ciprian, 38, and Pediroda, 42, commented: “we are extremely happy that ESMA recognized the quality of our procedures: our organization grants we can assess the credit quality of the company in the most transparent and innovative way possible.