Regulation on credit rating agencies
The Commission has prepared breakthrough changes in this area. The scope of control and monitoring of rating agencies proposed in the draft Regulation goes far beyond similar regulations in other industries and areas. The proposal is based on the Code of Conduct Fundamentals for Credit Rating Agencies, which is an international voluntary code of conduct that rating agencies are expected to follow. One of the essential requirements is transparency and independence, including the guarantee that ratings are independent from business incentives. A special system of internal audits is required. The fees of top managers are expected to be independent from the profit of the agencies. The proposal relies on rating agencies’ duty to disclose applied rating procedures, models and assumptions, including amounts and ratios of all previous failed ratings. Ratings should not be carried out unless sufficient high-quality information is available. Should the proposal be adopted, another novelty will be the mandatory registration of rating agencies in EU Member States and the publication of the registrations in the Official Bulletin.
Other articles
KŠB secures landmark Supreme Court ruling on size premiums in squeeze-out valuations
Kocián Šolc Balaštík (KŠB) has obtained a significant victory before the Czech Supreme Court in a dispute over the fairness of the consideration paid to minority shareholders in Léčebné lázně Mariánské Lázně a.s. In its judgment in case no. 27 Cdo 1678/2025, the Court dismissed the claimants’ appeal and upheld the lower courts’ decisions. KŠB lawyers Radka Felgrová and Vlastimil Pihera represented the company and its majority shareholder.
KŠB advises on the sale of a majority stake in Znakon Group to enteria
KŠB provided legal advice on the sale of a 75% stake in Znakon, Znakon Asfalt and Znakon Servis to enteria, a Pardubice-based group and one of the Czech Republic’s largest construction holdings.
KŠB Runs for a Good Cause
On Tuesday, 8 September three teams from KŠB took part in the eighth annual Good Will Run organised by the Olga Havel Foundation in Prague’s Hvězda Park. Proceeds from the entry fees will go towards supporting families facing difficult circumstances due to serious illness, loss of housing or domestic violence.
