On February 2, the SEC published the final release adopting rule amendments imposing additional requirements on nationally recognized statistical rating organizations (“NRSROs”) in order to address concerns about the integrity of their credit rating procedures and methodologies. These new rules are effective April 10, 2009,
At their December 3, 2008 open meeting where the final NRSRO rule release was adopted, the SEC also approved publication of a separate proposing release. This proposing release was also published on February 2. These proposals:
- would require the public disclosure of credit rating histories for all outstanding credit ratings issued by an NRSRO on or after June 26, 2007 paid for by the obligor being rated or by the issuer, underwriter, or sponsor of the security being rated;
- solicit detailed information about the issues surrounding the application of a disclosure requirement on subscriber-paid credit ratings; and
- repropose for comment an amendment to its conflict or interest rule that would prohibit an NRSRO from issuing a rating for a structured finance product paid for by the product’s issuer, sponsor, or underwriter unless the information about the product provided to the NRSRO to determine the rating and, thereafter, to monitor the ratng is made available to other persons.
The deadline for comments on this proposing release is March 26, 2009.
The final rule release is available at: http://www.sec.gov/rules/final/2009/34-59342.pdf
The proposing rule release is available at: http://www.sec.gov/rules/proposed/2009/34-59343.pdf