21 February 2025

• Second-best rating will apply for private sector assets
• Changes will enter into force no earlier than 18 months from today to allow technical implementation
• For euro area public sector assets, first-best rating will continue to apply

On 19 February 2025 the Governing Council of the European Central Bank (ECB) decided to change the rules on the use of credit ratings issued by external credit assessment institutions (ECAIs) to assess the eligibility of private sector assets for use as collateral under the Eurosystem collateral framework and to determine the haircuts to be applied to those assets. Accordingly, the second-best rating will apply for private sector assets such as unsecured bank bonds, covered bank bonds and assets issued by non-financial corporations. This decision also applies to the accepted non-euro area public sector and follows a thorough review of the rating aggregation rules aimed at making better use of all available credit rating information in…