AFP Applauds SEC Report on Credit Rating Agencies
The Association for Financial Professionals (AFP) said it supports the decision by the US Securities and Exchange Commission (SEC) to further examine its oversight of rating agencies. The SEC’s action was disclosed in a report delivered to Congress on Friday, January 24. ‘We are pleased that the SEC will be considering steps to increase its oversight of rating agencies and stimulate competition in the market for accurate and timely credit rating information,’ said Jim Kaitz, president and CEO of AFP. In November, an AFP survey reported that 29 per cent of practitioners who work for companies with rated debt believe that their company’s ratings are inaccurate. The SEC will further examine issues identified during its preparation of the report, including potential barriers to entry to the market for credit ratings and the SEC’s ongoing oversight of rating agencies. The report further stated that the SEC will propose rules within 60 days and solicit public comment.