The civil liability of credit rating agencies : a comparative perspective within the European Union

Abstract

This thesis explores the potential civil liability of Credit Rating Agencies towards investors in the European Union and more especially in France, Germany and the United Kingdom. The recent provision Article 35a of the EU Regulation on CRAs facilitating CRAs’ liability towards investors has to be added to the legal bases existing under the law of these Member States. Fruitful comparative conclusions can be drawn from this analysis, inspiring judges of these Member States on issues specific to civil liability claims against CRAs such as the limits and characteristics of the class of claimants; the foreseeability of the use of ratings by investors and of their damage in case of incorrect rating; or, the degree of care required of CRAs because of their status as gatekeepers. The main conclusion is, nonetheless, that the area is clouded by legal uncertainty, with no decided cases on this specific matter in any of the Member States examined. To overcome the current legal uncertainty in Member States’ approaches to the issue, pertaining to the scope of civil liability, I advance certain proposals aimed at maintaining legal responsibility within reasonable limits in the final chapter of this thesis.