June 4, 2020 / 8:11 AM / a month ago

UPDATE 1-EU watchdog fines Scope Ratings 640,000 euros

(Adds company statement)

LONDON, June 4 (Reuters) - The European Union’s markets watchdog said on Thursday it has fined Scope Ratings 640,000 euros ($717,440) for failings in covered bond ratings.

“In both instances Scope committed the infringements negligently and failed to meet the special care expected from a credit rating agency (CRA) as a professional firm in the financial services sector,” ESMA said in a statement.

Scope Ratings said the fine relates to actions taken five years ago and that the EU regulator has not challenged the accuracy, independence and robustness of the ratings issued at the time.

“At the time, Scope had inadvertently taken a different interpretation of relevant parts of EU legislation on credit rating agencies which turned out to be different from ESMA’s,” Scope said.

“Since 2016, Scope has entirely remedied the issues identified by ESMA and reinforced its internal controls regarding the application of the relevant regulations.”

Scope said it had already made provisions for the fine.

$1 = 0.8921 euros Reporting by Huw Jones; editing by Andrew Heavens and Jason Neely

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