Press Release: Seven Credit Rating Agencies Register with SEC as Nationally Recognized Statistical Rating Organizations (Press Release No. 2007-199; September 24, 2007)
The SEC registered seven credit rating agencies as NRSROs under the 2006 Credit Rating Agency Reform Act to enhance transparency and accountability, with no fraud or charges involved—only regulatory compliance requiring public disclosure of methodologies and performance data by October 8, 2007.
On September 24, 2007, the SEC granted registration to seven credit rating agencies—A.M. Best, DBRS, Fitch, Japan Credit Rating Agency, Moody’s, Rating and Investment Information, and Standard & Poor’s—as Nationally Recognized Statistical Rating Organizations (NRSROs) under the Credit Rating Agency Reform Act of 2006. The Act mandated these firms to publicly disclose their rating methodologies and performance statistics, including historical downgrades and default rates, to improve market transparency and investor protection. No fraud, penalties, or enforcement actions were cited; the release solely documented regulatory compliance with a deadline of October 8, 2007, for posting Form NRSRO disclosures.
On September 24, 2007, the Securities and Exchange Commission issued orders registering seven credit rating agencies as Nationally Recognized Statistical Rating Organizations (NRSROs) under the Credit Rating Agency Reform Act of 2006, marking the first such registrations under the new law. The registered firms—A.M. Best, DBRS, Fitch, Japan Credit Rating Agency, Moody’s, Rating and Investment Information, and Standard & Poor’s—were required to disclose their rating methodologies and publish performance data such as historical downgrades and default rates to foster transparency and accountability. A.M. Best was registered for four classes of ratings, while the other six were registered for all five classes, including asset-backed and government securities. The SEC’s final rules implementing the Act took effect on June 26, 2007, and each agency had until October 8, 2007, to post its Form NRSRO and non-confidential exhibits online. SEC Chairman Christopher Cox stated that this oversight would protect investors and promote competition in the credit rating industry. There were no allegations of fraud, misconduct, or financial penalties in the release; the focus was entirely on regulatory compliance and structural reform. The move was part of a broader effort to restore market confidence following growing concerns about rating accuracy in the lead-up to the financial crisis.
Exhibits & Attached Documents (8)
- pdf ORDER GRANTING REGISTRATION OF A.M. BEST COMPANY, INC. AS A
- pdf ORDER GRANTING REGISTRATION OF DBRS LIMITED AS A NATIONALLY
- pdf ORDER GRANTING REGISTRATION OF FITCH, INC. AS A NATIONALLY
- pdf ORDER GRANTING REGISTRATION OF JAPAN CREDIT RATING AGENCY,
- pdf ORDER GRANTING REGISTRATION OF MOODY’S INVESTORS SERVICE, INC.
- pdf INFORMATION, INC. AS A NATIONALLY RECOGNIZED STATISTICAL RATING
- pdf ORDER GRANTING REGISTRATION OF STANDARD & POOR’S RATINGS
- pdf VerDate Aug<31>2005 20:05 Jun 15, 2007 Jkt 211001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\18JNR2.SGM 18JNR2
Extracted insights
- company a.m. best company, inc.
- person christopher cox
- company dbrs ltd.
- person each nrsro
- company Fitch, Inc.
- company japan credit rating agency, ltd.
- company moody's investors service, inc.
- company Rating And Investment Information, Inc.
- agency sec oversight will protect investors and enhance reliability of credit ratings
- agency Securities and Exchange Commission
- SEC issued orders granting registrations Seven Credit Rating Agencies as NRSROs
- A.M. Best Company, Inc. registered as NRSRO
- DBRS Ltd. registered as NRSRO
- Fitch, Inc. registered as NRSRO
- Japan Credit Rating Agency, Ltd. registered as NRSRO
- Moody's Investors Service, Inc. registered as NRSRO
- Rating and Investment Information, Inc. registered as NRSRO
- Standard & Poor's Ratings Services registered as NRSRO
- Credit Rating Agency Reform Act of 2006 requires Registered credit rating agencies to disclose procedures and methodologies
- Christopher Cox said SEC oversight will protect investors and enhance reliability of credit ratings
- SEC implemented final rules Credit Rating Agency Reform Act
- A.M. Best Company, Inc. registered with respect to Four classes of credit ratings
- Other six NRSROs registered with respect to All five classes of credit ratings
- Each NRSRO required by October 8, 2007 to make public Current Form NRSRO and non-confidential exhibits
Seven Credit Rating Agencies Register with SEC as Nationally Recognized Statistical Rating Organizations FOR IMMEDIATE RELEASE 2007-199 Washington, D.C., Sept. 24, 2007 — The Securities and Exchange Commission issued orders today granting the registrations of seven credit rating agencies as nationally recognized statistical rating organizations (“NRSRO”). The firms are the first to be registered with the Commission under the Credit Rating Agency Reform Act of 2006. The seven firms registered as NRSROs are: A.M. Best Company, Inc. DBRS Ltd. Fitch, Inc. Japan Credit Rating Agency, Ltd. Moody’s Investors Service, Inc. Rating and Investment Information, Inc. Standard & Poor’s Ratings Services The Credit Rating Agency Reform Act and the Commission’s new rules require registered credit rating agencies to disclose their procedures and methodologies for assigning ratings. The NRSROs are also required to make public certain performance measurement statistics including historical downgrades and default rates. “The Commission’s newly-granted oversight of credit rating agencies will protect investors and enhance the reliability of credit ratings by fostering accountability, transparency, and competition in the credit rating industry,” said SEC Chairman Christopher Cox. The Commission’s final rules implementing the Credit Rating Agency Reform Act took effect on June 26, 2007. Each of the applications for registration was acted upon by the Commission within 90 days, as generally required by law. Under the Credit Rating Agency Reform Act, an NRSRO may be registered with respect to up to five classes of credit ratings: (1) financial institutions, brokers, or dealers; (2) insurance companies; (3) corporate issuers; (4) issuers of asset-backed securities; and (5) issuers of government securities, municipal securities, or securities issued by a foreign government. A.M. Best Company, Inc., is registered with respect to the first four classes of credit ratings; the other six firms are registered with respect to all five classes. By October 8, 2007, each of these NRSROs is required to make public on its web site its current Form NRSRO and non-confidential exhibits. # # # Additional Materials: Commission orders granting registration as an NRSRO A.M. Best Company, Inc. (Release No. 34-56507) DBRS Ltd. (Release No. 34-56508) Fitch, Inc. (Release No. 34-56509) Japan Credit Rating Agency, Ltd. (Release No. 34-56510) Moody’s Investors Service, Inc. (Release No. 34-56511) Rating and Investment Information, Inc. (Release No. 34-56512) Standard & Poor’s Ratings Services (Release No. 34-56513) Commission Press Release of June 28, 2007 Commission release adopting final rules under the Rating Agency Act (Release No. 34-55857) http://www.sec.gov/news/press/2007/2007-199.htm Home | Previous Page Modified: 09/24/2007
Seven Credit Rating Agencies Register with SEC as Nationally Recognized Statistical Rating Organizations FOR IMMEDIATE RELEASE 2007-199 Washington, D.C., Sept. 24, 2007 — The Securities and Exchange Commission issued orders today granting the registrations of seven credit rating agencies as nationally recognized statistical rating organizations (“NRSRO”). The firms are the first to be registered with the Commission under the Credit Rating Agency Reform Act of 2006. The seven firms registered as NRSROs are: A.M. Best Company, Inc. DBRS Ltd. Fitch, Inc. Japan Credit Rating Agency, Ltd. Moody’s Investors Service, Inc. Rating and Investment Information, Inc. Standard & Poor’s Ratings Services The Credit Rating Agency Reform Act and the Commission’s new rules require registered credit rating agencies to disclose their procedures and methodologies for assigning ratings. The NRSROs are also required to make public certain performance measurement statistics including historical downgrades and default rates. “The Commission’s newly-granted oversight of credit rating agencies will protect investors and enhance the reliability of credit ratings by fostering accountability, transparency, and competition in the credit rating industry,” said SEC Chairman Christopher Cox. The Commission’s final rules implementing the Credit Rating Agency Reform Act took effect on June 26, 2007. Each of the applications for registration was acted upon by the Commission within 90 days, as generally required by law. Under the Credit Rating Agency Reform Act, an NRSRO may be registered with respect to up to five classes of credit ratings: (1) financial institutions, brokers, or dealers; (2) insurance companies; (3) corporate issuers; (4) issuers of asset-backed securities; and (5) issuers of government securities, municipal securities, or securities issued by a foreign government. A.M. Best Company, Inc., is registered with respect to the first four classes of credit ratings; the other six firms are registered with respect to all five classes. By October 8, 2007, each of these NRSROs is required to make public on its web site its current Form NRSRO and non-confidential exhibits. # # # Additional Materials: Commission orders granting registration as an NRSRO A.M. Best Company, Inc. (Release No. 34-56507) DBRS Ltd. (Release No. 34-56508) Fitch, Inc. (Release No. 34-56509) Japan Credit Rating Agency, Ltd. (Release No. 34-56510) Moody’s Investors Service, Inc. (Release No. 34-56511) Rating and Investment Information, Inc. (Release No. 34-56512) Standard & Poor’s Ratings Services (Release No. 34-56513) Commission Press Release of June 28, 2007 Commission release adopting final rules under the Rating Agency Act (Release No. 34-55857) http://www.sec.gov/news/press/2007/2007-199.htm Home | Previous Page Modified: 09/24/2007