Featured Product

    SEC Releases Annual Reports on Credit Rating Agencies Registered in US

    January 24, 2020

    SEC published two staff reports on the important work of the Office of Credit Ratings in examining and monitoring on the nationally recognized statistical rating organizations (NRSROs). Among others, the annual report covers developments in the competitive landscape for credit rating agencies. The reports indicate that the NRSROs made certain improvements in response to the examinations by staff and that the range of NRSROs issuing commentaries, along with the topics covered by those commentaries, has expanded.

    The nine credit rating agencies registered in the US as NRSROs, as of January 15, 2020, are A.M. Best Rating Services Inc, DBRS Inc, Egan-Jones Ratings Company, Fitch Ratings Inc, HR Ratings de México S.A. de C.V., Japan Credit Rating Agency Ltd, Kroll Bond Rating Agency Inc, Moody’s Investors Service Inc, and S&P Global Ratings. With respect to these agencies, the report on NRSRO examinations summarizes the findings and recommendations within each of the eight review areas required by statute. These areas are adherence to policies, procedures, and methodologies; management of conflicts of interest; implementation of ethics policies; internal supervisory controls; governance; activities of designated compliance office; complaints; and post-employment factors.

    The annual report on NRSROs, however, discusses the state of competition, transparency, and conflicts of interest among the firms, in addition to identifying any applicants for NRSRO registration. While the information reported by NRSROs indicates that Moody’s, S&P, and Fitch continue to account for the highest percentages of outstanding ratings, other information suggests that smaller NRSROs have gained market share in certain asset classes. A large proportion of the aggregate credit ratings reported to be outstanding were in the government securities category, which accounted for 79.0% of the credit ratings across all categories and is also the most concentrated rating category, with Moody’s and S&P accounting for 87.2% of all outstanding government ratings. A comparison of each NRSRO’s share of outstanding ratings over all the rating categories, including government securities, illustrates that there is less concentration in the non-government securities rating categories. S&P’s and Moody’s percentage share of all outstanding ratings declines by 14.5 and 5.6 percentage points, respectively, when government securities are excluded. Fitch’s percentage share of outstanding ratings, however, increases by 7.2 percentage points when government securities are excluded.

     

    Related Links

    Keywords: Americas, US, Banking, Insurance, Securities, NRSRO, Credit Rating Agencies, Credit Risk, SEC

    Related Articles
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    News

    Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks

    At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.

    September 14, 2023 WebPage Regulatory News
    News

    ISSB Standards Shine Spotlight on Comparability of ESG Disclosures

    The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures

    August 22, 2023 WebPage Regulatory News
    News

    EBA Issues Several Regulatory and Reporting Updates for Banks

    The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.

    August 10, 2023 WebPage Regulatory News
    News

    BCBS Proposes to Revise Core Principles for Banking Supervision

    The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.

    August 04, 2023 WebPage Regulatory News
    News

    US Proposes Final Basel Rules, Transition Period to Start in July 2025

    The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.

    August 04, 2023 WebPage Regulatory News
    News

    FSB Report Outlines Next Steps for Climate Risk Roadmap

    The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.

    August 04, 2023 WebPage Regulatory News
    News

    EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise

    The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.

    July 31, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8931