Credit Rating Agencies Settle SEC Charges

Date: WASHINGTON (Reuters)

Six credit rating agencies have agreed to settle charges from the U.S. Securities and Exchange Commission (SEC) regarding violations of recordkeeping rules, totaling over $49 million in civil penalties.

Agencies Involved

• Moody’s Investors Service
• S&P Global Ratings
• Fitch Ratings
• HR Ratings de Mexico
• A.M. Best Rating Services
• Demotech

Summary of Penalties

Each agency admitted to significant failures in maintaining and preserving electronic communications:
– Moody’s: $20 million
– S&P: $20 million
– Fitch: $8 million
– A.M. Best: $1 million
– HR Ratings: $250,000
– Demotech: $100,000

The SEC has imposed fines on numerous firms for similar offenses, particularly linked to the use of messaging platforms like WhatsApp for communication. No immediate comments were received from legal representatives of the firms.