Rating firm DBRS considering European office as Brexit insurance

LONDON (Reuters) - The London-based credit-rating agency DBRS says it will need to open a new office in mainland Europe if Britain's vote to leave the European Union affects its business in the EU.

A new office may be required to maintain an EU licence, which DBRS needs to sell its services in Europe and remain one of the European Central Bank's recognised rating firms, DBRS's European head, Detlef Scholzk, told Reuters.

"Registration and supervision by ESMA (European Securities and Markets Authority) is important to us and to our customers. Accordingly, we are prepared to adjust our business model," Scholz said on Friday.

"In line with our overall business strategy, this could include setting up one or more additional offices in continental Europe if this helps to stay close to our customers."

The problem is bigger for DBRS because its European analysts are all currently based in London. Competing agencies Standard and Poor's, Moody's and Fitch already have sizable offices in continental cities such as Frankfurt and Paris.

DBRS is unlikely to require a mass shift of staff out of London, but it will need to either move or hire at least some analytical and compliance staff to meet ESMA's standards.

"Our hope is that the regulatory regime across Europe remains consistent," Scholz said.

"All European regulations for credit rating agencies follow IOSCO (the International Organisation of Securities Commissions) recommendations and we would anticipate that remaining the same regardless of the outcome of the more detailed Brexit negotiations."

(Reporting by Marc Jones, editing by Larry King)