Moody’s Germany fined EUR 2,145,000 for misreporting to ESMA

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has fined Moody’s Deutschland GmbH (Moody’s Germany) a total of EUR 2,145,000, for committing four breaches of the Credit Rating Agencies Regulation (CRA Regulation), and issued a public notice. Verena Ross, ESMA’s Chair said: "Moody’s Germany breached the CRA Regulation by failing to provide complete, accurate and up-to-date data to ESMA. High quality, reliable reporting is critical for detecting risks and maintaining transparency in EU financial markets. ESMA will continue to ensure that credit rating agencies comply with their responsibilities and maintain robust systems and controls." The errors affected only data submitted by Moody’s Germany to ESMA (including when acting on behalf of other CRAs within its group) and published on ESMA’s central platform. They did not affect the credit ratings published on Moody’s Germany’s website. However, complete and accurate reporting under the CRA Regulation is key to enabling ESMA to fulfil its statutory objectives, protect investors and foster the orderly functioning of financial markets. ESMA also identified deficiencies in Moody’s Germany’s regulatory reporting framework, including its policies, procedures and internal control mechanisms. The breaches were found to have resulted from negligence on the part of Moody’s Germany. In calculating the fine, ESMA considered both aggravating and mitigating factors provided in the CRA Regulation. Moody’s Germany is a private limited liability company established in Germany and a wholly owned, indirect subsidiary of Moody’s Corporation, which is a publicly traded company, incorporated in Delaware (USA) and listed on the New York Stock Exchange. Moody’s Germany is a CRA registered under the CRA Regulation and issues solicited and unsolicited credit ratings for all credit rating asset classes, namely sovereign and public finance, structured finance and corporate ratings (including insurance and financial institutions). Moody’s Deutschland GmbH together with other European subsidiaries of Moody’s Corporation is active in the European Union. In 2025, together they held 29.63% of the market share of all CRAs registered in the European Union. ESMA’s investigation found four breaches by Moody’s Germany of the CRA Regulation (detailed below): − Infringement regarding reports to the European Rating Platform Moody’s Germany failed to ensure that the information about credit ratings and rating outlooks that it reported to ESMA and published on the European Rating Platform, both on its own behalf and on behalf of other EU CRAs within its group, was correct. This infringement was repeated and manifested in various forms, including missing ratings and rating actions, non-withdrawn ratings, and errors in the submitted information. ESMA fined Moody’s Germany EUR 292,500 in this respect. − Infringement regarding reports to ESMA’s central repository Moody’s Germany submitted to ESMA incomplete or incorrect historical performance data and credit rating changes to be made available in ESMA’s central repository, both on its own behalf and on behalf of other EU CRAs within its group. These deficiencies persisted over an extended period of time. ESMA fined Moody’s Germany EUR 202,500 in this respect. − Infringement regarding policies and procedures The main documents governing the reporting to ESMA by Moody’s Germany (also on behalf of other EU CRAs within its group) lacked clarity as to the allocation of responsibilities and the validation of submissions, and were not properly reviewed or updated. In particular, there was no established process to correct errors in submissions. ESMA fined Moody’s Germany EUR 825,000 in this respect. − Infringement regarding internal control Moody’s Germany’s internal control framework had important shortcomings in its internal control mechanisms and risk assessment regarding its reporting obligations (also on behalf of other EU CRAs within its group). It did not ensure adequate checks, and roles and responsibilities within the control framework lacked clarity. ESMA fined Moody’s Germany EUR 825,000 in this respect. Right to appeal Moody’s Germany may appeal against this decision to the Board of Appeal of the European Supervisory Authorities. Such an appeal does not have suspensive effect, although the Board of Appeal may decide to suspend the application of the decision if requested to do so, in the context of an appeal. ESMA’s supervisory mandate Since July 2011, ESMA has been responsible for the supervision of credit rating agencies in the European Union, including their registration, in line with the requirements of the CRA Regulation. ESMA has the power to take appropriate enforcement action where it discovers a breach of the CRA Regulation, ranging from the issuance of public notices to the imposition of fines and withdrawal of registration. ESMA is the European Union’s financial markets regulator and supervisor. Its mission is to enhance investor protection and promote stable and orderly financial markets. It achieves this objective through three strategic priorities: fostering effective markets and financial stability, strengthening supervision of EU financial markets, enhancing protection of retail investors, and two thematic drivers: enabling sustainable finance; and facilitating technological innovation and effective use of data. ESMA achieves its mission within the European System of Financial Supervision (ESFS) through active cooperation with the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), the European Systemic Risk Board, and with national authorities with competencies in securities markets (NCAs).