Press Release

SEC Publishes Annual Staff Report on Nationally Recognized Statistical Rating Organizations

For Immediate Release

2025-32

Washington D.C., Jan. 28, 2025 —

The Securities and Exchange Commission’s Office of Credit Ratings (OCR) today published its annual Staff Report on Nationally Recognized Statistical Rating Organizations (NRSROs) summarizing the findings of the NRSRO examinations and discussing the state of competition, transparency, and conflicts of interest among NRSROs.

“Providing effective oversight of credit ratings used by market participants is a critical component of the SEC’s mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation,” said SEC Acting Chairman Mark Uyeda. “The report, which is mandated by statute, reflects the observations, analysis, and expertise of SEC staff in overseeing credit rating agencies.”

“Our examinations cover the eight statutory review areas while focusing on risks unique to the industry and each firm,” said Lori Price, Director of the SEC's Office of Credit Ratings. “We stay informed of market trends and developments throughout the year and publish a summary of our work in the annual report on NRSROs.”      

The staff’s 2024 NRSRO examinations reviewed several areas, including:

  • the process by which NRSROs determine whether their methodologies are appropriately designed to reflect their view of relevant credit risks as conditions evolve;

  • surveillance practices of NRSROs to assess compliance with statutory and rule requirements, such as the requirement to have an effective internal control structure;

  • commercial real estate related rating activity to assess NRSRO adherence to rating methodologies and surveillance requirements; and

  • securities ownership policies for NRSRO employees and directors to assess whether such policies are reasonably designed to address and manage the related potential conflicts of interest.

The staff examines NRSROs to promote compliance with applicable federal securities laws and rules. The staff also discusses credit rating activity and industry developments with NRSROs and market participants. OCR provides its examination findings to Congress and the public in its annual staff report.

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Last Reviewed or Updated: Jan. 28, 2025