On June 26, 2007, final Securities and Exchange Commission ("SEC") rules implementing the Credit Rating Agency Reform Act of 2006 ("Rating Agency Act") and certain provisions of the Rating Agency Act went into effect. Under the new rules, entities that provide credit ratings for corporations and other issuers of debt must meet certain criteria in order to be registered as a nationally recognized statistical rating organization ("NRSRO"). The SEC are considering applications for formal recognition from several rating organizations, including AM Best Inc., Fitch, Inc., Moody's Investors Service and Standard and Poor's Rating Services. The new law aims to improve the quality of credit ratings and is designed to increase competition within the rating community by increasing the number of NRSRO.
To view the SEC press release, click here.
To view the SEC release adopting the final rule under the Rating Agency Act, click here.