Credit-Rating Companies Cautioned by SEC Over Deceptive Conduct, Controls

The U.S. Securities and Exchange Commission has issued a report cautioning credit rating agencies about deceptive ratings conduct and the importance of sufficient internal controls over the policies, procedures, and methodologies the firms use to determine credit ratings.

The SEC’s Report of Investigation stems from an Enforcement Division inquiry into whether Moody’s Investors Service Inc. violated the registration provisions or the antifraud provisions of the federal securities laws. The information was disclosed in an e-mailed statement.

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