SEC Publishes Two Reports on Credit Rating Agencies Showing Continued Focus on Compliance and Competition

Credit rating agencies registered with the SEC continue to promote compliance by enhancing their policies, procedures, and internal controls in response to Commission rules and staff examinations. SEC staff reports released today on nationally recognized statistical rating organizations (NRSROs) show that some firms are self-reporting instances of noncompliance and some smaller firms are continuing to compete with the larger firms in certain rating categories. "NRSROs have maintained the improvements that they implemented in prior years in response to the staff's recommendations," said Jessica S. Kane, Director of the SEC's Office of Credit Ratings. "We continue to assess potential risks at each NRSRO when determining areas to examine so that we provide the most effective oversight for the protection of investors." The report on NRSRO examinations summarizes the staff’s findings and recommendations within each of the eight review areas required by statute.