SEC Charges Six Credit Rating Agencies with Significant Recordkeeping Failures

The Securities and Exchange Commission today announced charges against six nationally recognized statistical rating organizations, or NRSROs, for significant failures by the firms and their personnel to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders; acknowledged that their conduct violated recordkeeping provisions of the federal securities laws; agreed to pay combined civil penalties of more than $49 million, as detailed below; and have begun implementing improvements to their compliance policies and procedures to address these violations. Moody’s Investors Service, Inc. agreed to pay a $20 million civil penalty; S&P Global Ratings agreed to pay a $20 million civil penalty; Fitch Ratings, Inc. agreed to pay an $8 million civil penalty; HR Ratings de México, S.A. de C.V. agreed to pay a $250,000 civil penalty; A.M. Best Rating Services, Inc.