The SEC banned who from rating what?

By Ryan Bolger
22 Jan 2015

The Securities & Exchange Commission’s decision to suspend Standard & Poor's from rating conduit fusion CMBS deals for one year may seem dramatic, but will have little effect on issuers and investors. Market participants have already adapted to life without the ratings agency, which has seen its market share drop by a factor of 10 since 2007.

Most investment funds are governed by mandates that require ratings from at least two nationally recognized statistical rating organizations. Issuers can still pay Moody’s, Kroll, Fitch, DBRS and Morningstar, all of which have greater market share than S&P, to rate new conduit CMBS transactions.

S&P rated more deals ...

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