Credit Rating Agency Task Force
Mission & Goals
To ensure more efficient and fully functioning capital markets, it is essential that we review the credit ratings process and the quality and use of ratings. These are important steps to restoring investor confidence and trust in our markets.
SIFMA has formed a global, investor-led task force to identify and examine key issues related to the credit ratings paradigm. The task force is exploring the current credit rating agency model, including key issues such as transparency, credit rating agency performance, and surveillance. The goal of the task force is for a single, broad-based group to examine credit rating agency issues and arrive at specific recommendations that rebuild the investor confidence that is vital to the global capital markets. The task force is also interfacing with government officials, legislators, regulators, multi-lateral authorities, and key credit rating agencies.
The task force has been designated by the President's Working Group on Financial Markets (the 'PWG') as the private sector group to provide the PWG with industry recommendations on credit rating matters.
The task force is comprised of 37 members from the U.S., Europe and Asia, and includes asset managers, underwriters, and issuers representing a cross-section of the financial services industry. Individuals participating on the task force provide specific expertise in structured finance, municipals, short-term debt ratings, corporate debt, and risk, among key areas. Members are senior-level executives from SIFMA member firms.
The following co-chairs lead the task force:
Deborah A. Cunningham
Chief Investment Officer
Federated Investors
Boyce I. Greer
President, Fixed Income and Asset Allocation Division
Fidelity
- List of SIFMA CRA Executive Task Force Members (pdf)
- List of SIFMA CRA Legal Task Force Members (pdf)
Recommendations
Recommendations of the SIFMA Credit Rating Agency Task Force - July 2008
Press Releases
July 30, 2008
SIFMA Credit Rating Agency Task Force Issues Global Recommendations for Credit Rating Agency Reform
July 25, 2008
SIFMA Supports SEC Efforts to Improve Investor Confidence in Credit Ratings; Suggests Ways to Improve Proposed Rules
June 25, 2008
SIFMA’s Credit Rating Agency Task Force Supports SEC Proposals Allowing Continued Use of Ratings
June 11, 2008
SIFMA’s Credit Rating Agency Task Force: SEC Credit Rating Agency Proposals Should Not Require Rating Modifiers
April 22, 2008
SIFMA Announces Task Force to Make Recommendations on the Evolution of the Credit Rating Agency Model
Correspondence & Filings with Regulators
July 24, 2008
Comment letter to SEC from SIFMA CRA Task Force re: Proposed Rules for Nationally Recognized Statistical Rating Organizations,
Release No. 34-57967 (pdf)
June 30, 2008
Letter from SEC Chairman Cox in response to June 10, 2008 letter to task force co-chairs re: Credit Rating Modifiers (pdf)
June 10, 2008
Letter to SEC Commissioners from SIFMA CRA Task Force re: Credit Rating Modifiers (pdf)
Task Force Materials
Policy Statement on Financial Market Development, The [US] President’s Working Group on Financial Markets - March 2008 (pdf)
Summary of Performance-Related Rating Changes - (view chart as full PDF)
Articles
August 5, 2008
Reuters: Credit rating agencies strive to restore image
Reuters: After the fall, credit ratings agencies seek redemption by Walden Siew - Analysis
August 4, 2008
Financial Times: Efforts to bring credit ratings into clearer focus by Paul J Davies
August 1, 2008
SIFMA Pushes for Global Ratings 'Harmonization' by Andrew Ackerman and Amy B Resnick
July 31, 2008
Bloomberg: Sifma Says Structured-Debt Ratings Shouldn't Change (Update1)
by Jody Shenn
Bloomberg: Moody's, S&P May Be Overseen by European Union Agency by Neil Unmack and John Rega
Dow Jones: SIFMA Seeks Detailed Disclosures From Rating Agencies by Prabha Natarajan
Financial Times: Brussels outlines ratings agencies plan by Nikki Tait in Brussels and Paul J. Davies
Investment Executive: "SIFMA task force issues recommendations for credit rating agency reform" by James Langton
Investment News: "SIFMA seeks to reform ratings agencies" by Sara Hansard
CFO.com: "Dirty Dozen: How to Cleanse Credit Ratings Securities industry task force has its own ideas for improving the system — 12 of them" by Stephen Taub and Roy Harris
Global Pensions: "CRA reform recommendations issued,” by Keren Holland
Reuters: "SIFMA faults raters, calls for global advisory board" by Walden Siew
Crane Data: "SIFMA Supports, Pokes Holes in, SEC NRSRO Transparency Proposals"
Khaleej Times: “Rating agencies may be prosecuted under EU draft”
The Bond Buyer: “Committee Passes Frank's Ratings Bill” by Andrew Ackerman
July 25, 2008
Mondovisione:" SIFMA Supports SEC Efforts To Improve Investor Confidence in Credit Ratings - Suggests Ways to Improve Proposed Rules”
June 26, 2008
Advanced Trading: "SIFMA’s Credit Rating Agency Task Force Supports SEC Ratings Proposals" by Leslie Kramer
Exchange News Direct/Mondovisione: "SIFMA’s Credit Rating Agency Task Force Supports SEC Proposals Allowing Continued Use of Ratings"
The Bond Buyer: "SEC Votes to Remove NRSRO from 38 Rules; Agency Hopes to Boost Analysts’ Role” by Andrew Ackerman
June 20, 2008
CCH Wall St.: "SEC to Tighten Credit Rating Regs" by Edward Hayes
June 16, 2008
Markets Media: "SIFMA Criticizes SEC Ratings Proposal" by Ed Zwirn
June 12, 2008
Business Spectator: "US SEC pulls in Credit Raters" by Karey Wutkowski of Reuters
Bond Buyer: "SEC Votes to Propose NRSRO Rules Changes" by Andrew Ackerman
Market Watch: "SEC's 'symbolic gesture' already under fire" by Judith Burns
Barrons Online: "SEC Backs Changes In Rules on Ratings" by Kara Scannell and Aaron Lucchetti
June 11, 2008
Investment Executive: "Proposed SEC Reforms Intended to Increase Transparency of Credit Rating Process" by James Langton
Forbes.com: "US SEC plans tougher rules for credit raters" by Karey Wutkowski
Structured Finance News.com: "SIFMA Expresses Concern Over SEC Proposal" by Claire Luke
Financial Times: "Regulators raise fears over ‘hardwired’ credit ratings" by Joanna Chung and Aline van Duyn
Mondovisione: " SIFMA’s Credit Rating Agency Task Force: SEC Credit Rating Agency Proposals Should Not Require Rating Modifiers"
June 10, 2008
Financial Times: "Financials resist plan on rating reforms" by Joanna Chung & Nicole Bullock in New York and Gillian Tett in London
April 24, 2008
Bond Buyer: "SIFMA Announces Task Force on Rating Agencies" by Andrew Ackerman
April 22, 2008
BusinessWeek Online: "SEC to consider tighter regulations on rating agencies" by Alan Zibel
Investment News: "SIFMA Mounts Probe on Credit Ratings" by Aaron Siege