SEC Cites Problems at Rating Agencies (Reuters)

Annual review says some agencies failed to disclose method changes or lagged in downgrading securities.

The Securities and Exchange Commission’s annual examinations of credit rating agencies, which was called for by the Dodd-Frank Act in 2010, found that some agencies did not disclose changes in their methods for rating securities and some were slow to downgrade securities, according to Reuters.

The SEC report summarizes the findings of its on-site examinations of all nine companies designed as rating agencies by the SEC, which includes the three major raters: Moody’s Investors Service, Standard & Poor’s and Fitch. The report does not link the violations it cites to individual rating agencies.

 

See the full story here and the SEC report here.

 

 

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