On March 3rd, the SEC published the proposing release and text of rule amendments that would remove references to credit ratings in certain rules and forms under the Securities Act of 1933 and the Investment Company Act of 1940. The SEC is proposing amendments to two rules and four forms, including Rule 2a-7, which governs the operations of money market funds. Under the proposal, a rating would no longer be a required element in determining which securities are permissible investments for a money market fund. A security would instead be an eligible investment for a money market fund if the fund's board or its delegate determines that the security presents minimal credit risks. As under the current rule, funds would have to invest at least 97 percent of their assets in securities that the board has determined are issued by an issuer that has the highest capacity to meet its short-term financial obligations. This latter standard is intended to be consistent with the highest credit rating category. The proposed amendments also would remove credit ratings in three other areas: repurchase agreements, certain business and industrial development company investments, and shareholder reports. Comments should be submitted on or before April 25, 2011. SEC Press Release. See also Schapiro Remarks; Aguilar Remarks (concurring with reservations); Paredes Remarks (concurring with reservations).