DBRS Comments on Proposals to Eliminate References to Ratings of Nationally Recognized Statistical Rating Organizations

DBRS has commented on the proposals to eliminate from U.S. federal securities regulations virtually all references to credit ratings issued by nationally recognized statistical rating organizations (NRSROs).

The U.S. Securities and Exchange Commission (SEC) initially put the proposals for removing NRSRO references out for comment last year. In general, the proposals received an overwhelmingly negative response from public commenters, including DBRS.* The SEC recently adopted the few proposed rule changes to which the public did not object.** In this letter, DBRS reiterates its earlier views on the remaining proposed rule changes and suggests that the events of the past year further demonstrate the need for the objective credit assessments NRSRO ratings provide, especially where there is no viable substitute.

DBRS’s comment letter to the SEC is available on www.dbrs.com under Regulatory Affairs.

DBRS has its headquarters in Toronto, with offices in New York and Chicago, and covers entities worldwide.


* Letter from Kent Wideman, Group Managing Director, Policy and Rating Committee, DBRS and Mary Keogh, Managing Director, Policy and Regulatory Affairs, DBRS, dated September 8, 2008.

** "References to Ratings of Nationally Recognized Statistical Rating Organizations," Release Nos. 34-60789, IC-28939 (October 5, 2009), 74 Fed. Reg. 52358 (October 9, 2009).

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