On 16 November 2010, BaFin registered the first rating agency (Euler Hermes Rating GmbH) under Regulation (EC) 1060/2009 on Credit Rating Agencies (Regulation), which entered into force in December 2009.

BaFin is responsible for registering and supervising rating agencies in Germany until these tasks are transferred to the new European Securities and Markets Authority (ESMA).

The Regulation subjects rating agencies to government supervision for the first time. The heart of the Regulation is the registration procedure, under which a rating agency is granted EU-wide authorisation to perform credit rating activities provided that it meets the application requirements. As such, the Regulation lays down strict rules on the conduct and organisation of rating agencies. In particular, they must take extensive measures to prevent or minimise conflicts of interest in their activities. In addition, registered agencies may not simultaneously provide consulting and rating services for a company. A rotation principle has also been introduced for rating analysts. In future, rating agencies must regularly provide the BaFin (and later ESMA) with information on their working methodologies, models and ownership structure. However, supervisory authorities may not interfere in the agencies’ rating models themselves.