SEC Posts New Rules for Rating Companies

The Securities and Exchange Commission announced new rules for ratings companies.  Some of the rules are designed to limit conflicts of interest --firms cannot rate debt they helped structure, for example -- and some are designed to increase the disclosure of the rating process.  Rating firms must randomly disclose a sample of 10% of their credit ratings (with a delay of six months) on issuer-paid ratings and must disclose rating change percentages (upgrade, downgrade and defaults) in each asset class rated.  The changes are sensible so sensible that one wonders why they are 40 years overdue.