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SEC Publishes Annual Staff Report on Nationally Recognized Statistical Rating Organizations


Washington D.C., Feb. 16, 2024 —

The Securities and Exchange Commission’s Office of Credit Ratings published its annual Staff Report to Congress today on Nationally Recognized Statistical Rating Organizations (NRSROs), commonly known as credit rating agencies, to provide findings on its examinations of the agencies, and to discuss the state of competition, transparency, and conflicts of interest among them.

“The oversight of Nationally Recognized Statistical Rating Organizations is critical to the Commission's focus on investor protection,” said SEC Chair Gary Gensler. “The Office of Credit Ratings’ work and oversight benefits our efforts to protect investors as well as ensure the integrity of the rating process.”

“To protect investors, our examinations focus on specific activities of the credit rating agencies to assess whether or not they are compliant with applicable rules and regulations," said Lori Price, Director of the Office of Credit Ratings. “The staff’s work is summarized in a comprehensive annual report that discusses the findings of our examinations as well as market information about credit rating agencies and the credit rating industry.”

The staff’s NRSRO examinations during 2023 considered a number of factors, including:

  • NRSRO surveillance of highly leveraged companies that had experienced increased debt service payments due to a sustained rise in interest rates;
  • NRSRO ratings on single family rental income securitizations; and
  • NRSRO uses of analytical tools, the process by which an NRSRO distinguishes between analytical tools and models, and NRSRO approval processes for analytical tools and models.

The SEC’s Office of Credit Ratings examines credit rating agencies to promote compliance with applicable federal securities laws and rules by identifying potential instances of non-compliance by credit rating agencies. Information obtained during an examination can also inform SEC staff of noteworthy industry developments. It provides its findings to Congress and the public in its annual Staff Report.

Prior years’ reports from the Office of Credit Ratings are available here.


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