Background

On February 2, 2009, the Securities and Exchange Commission (the “SEC”) issued final rule amendments (the “Final Rules”) relating to Nationally Recognized Statistical Rating Organizations (“NRSROs”) and proposed additional NRSRO rules (the “Proposed Rules”).1

The Final Rules are intended to increase the transparency of rating methodologies of the NRSROs, strengthen disclosures of ratings performance, prohibit certain practices that create conflicts of interest, and enhance recordkeeping and reporting obligations. The Final Rules include new prohibited conflicts of interest, disclosure obligations, and reporting and recordkeeping requirements.