The German insurance supervisor BaFin has published a new ruling on the basis of a EU-Directive on the “Use of External Ratings and Conduct of Own Credit Risk Tests”.

Investors are obliged to make own credit risk considerations for all assets that are regularly rated by external recognised rating agencies. The check needs to be verifiably documented and may be qualitatively appraised by the investor.

Assets that are managed externally by investment fund managers need not to be additionally considered on the basis of own tests of the credit worthiness of the credit risks in the fund.

Further details can be obtained on request.