Monday, June 16, 2008
The SEC released the text of proposed rule amendments that would impose additional requirements on nationally recognized statistical rating organizations (“NRSROs”) in order to address concerns about the integrity of their credit rating procedures and methodologies in the light of the role they played in determining credit ratings for securities collateralized by or linked to subprime residential mortgages. The SEC also makes a proposal related to structured finance products rating symbology. Comments are due 30 days after publication in the Federal Register.
Two weeks from today, the SEC intends to propose rule amendments that would reduce undue reliance on the Commission’s rules on NRSRO ratings.