The European Union's markets authority imposed a fine on Standard & Poor's following their release of credit ratings prematurely to the public, the regulator said on Friday.

S&P Global Ratings Europe was fined 1.1 million euros, (the equivalence of $1.2 million) for the breaches taking place between 2019 and 2021, as the European Securities and Markets Authority reported.

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S&P Global Ratings Europe and The European Securities and Markets Authority (ESMA) both published credit ratings before the concerned securities were issued by 6 unidentified entities. 

"Publishing a credit rating before the issuance of the rated securities may result in harm to the issuer, to investors, and more generally to the orderly functioning of the financial markets," ESMA chair Verena Ross said.

The ESMA pointed out flaws in S&P's internal control procedures. It also pointed out breaches in the agency's transparency obligations.

It is noteworthy that S&P can appeal the fine.

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