This report is the first annual report on the application of Article 21(5) of the Regulation No (EC)1060/20091 on credit rating agencies1 as amended by the Regulation No (EC) 513/20112 (CRA Regulation), which mandates ESMA to publish annually a report on the application of the Regulation. The report shall contain, in particular, an assessment of the implementation of Annex I by credit rating agencies (CRA) registered under the CRA Regulation3. Finally, this report also includes an assessment of ESMA’s staffing and resource needs as required by Article 39a of the CRA Regulation.