Egan-Jones Banned for 18 Months From Rating Sovereigns, ABS
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Egan-Jones Ratings Co. was barred from grading government debt and asset-backed securities for 18 months after settling claims it made material misstatements to the U.S. Securities and Exchange Commission.
Egan-Jones misled the regulator by asserting it had been ranking the two asset classes since 1995 when registering for so-called Nationally Recognized Statistical Rating Organization status, the SEC said today in a statement. In fact, the closely held, Haverford, Pennsylvania-based company started rating the debt in 2008, the year it applied for the designation.