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

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697