The Credit Rating Agencies (Civil Liability) Regulations 2013

Issuers: solicited credit ratings

10.—(1) If the claimant is an issuer and it, or a related third party, has entered into a contract with a credit rating agency to assign a credit rating in respect of such issuer or a financial instrument issued by such issuer, the court may consider the following factors, amongst others, to be indications that a limitation on liability is reasonable and proportionate—

(a) the limitation resulted from contractual negotiations between the issuer, or a related third party, and the credit rating agency;

(b) the price agreed between the issuer or a related third party and the credit rating agency reflects the extent of the limitation on liability;

(c) the credit rating agency gave the issuer a reasonable opportunity to submit additional factual information not previously available to the credit rating agency, or to clarify any factual inaccuracies regarding the proposed credit rating, before the credit rating was issued, and took account of those submissions or comments when finalising the credit rating;

(d) the limitation relates to losses which the credit rating agency could not reasonably have foreseen when it assigned the credit rating;

(e) the limitation relates to losses which no credit rating agency could reasonably insure against on a prudent commercial basis;

(f) the limitation relates to losses which no credit rating agency would reasonably be expected to have the resources to meet.

(2) The absence of a factor or factors in paragraph (1) does not indicate that a limitation on liability is unreasonable or disproportionate.