S&P Global Ratings Reaches Settlement with SEC
S&P Global Ratings (SPGR), a division of S&P Global (NYSE: SPGI), announced a settlement with the U.S. Securities and Exchange Commission (SEC) regarding an investigation into ratings assigned to a 2017 residential mortgage-backed securities transaction. SPGR has agreed to pay a penalty of USD 2.5 million but did not admit or deny the SEC's allegations. The SEC acknowledged SPGR's cooperation and remedial actions. SPGR emphasizes its commitment to regulatory compliance and the integrity of its credit ratings process.
- SPGR agreed to pay a penalty of USD 2.5 million, which may be viewed as a minor settlement relative to the scale of potential financial impacts.
- The SEC acknowledged SPGR's remedial actions and cooperation, indicating a positive relationship with regulators.
- The settlement indicates potential weaknesses in SPGR's rating processes that could affect investor confidence.
- Although SPGR did not admit wrongdoing, the existence of an SEC investigation could lead to reputational damage.
NEW YORK, Nov. 14, 2022 /PRNewswire/ -- S&P Global Ratings ("SPGR"), a division of S&P Global (NYSE: SPGI), announced today that it has reached a settlement with the U.S. Securities and Exchange Commission ("SEC") to resolve an SEC investigation involving the ratings assigned to a single residential mortgage-backed securities transaction in 2017. The matter was previously disclosed by S&P Global in its public filings.
As part of the resolution, in which SPGR did not admit or deny the allegations, the company agreed to pay a penalty of USD 2.5 million. In the SEC's order, the SEC acknowledged SPGR's remedial acts and its cooperation with the SEC staff. SPGR is pleased to have concluded this matter. SPGR takes compliance with regulatory obligations very seriously and is committed to the integrity of its ratings process and high-quality independent credit ratings.
About S&P Global Ratings
S&P Global Ratings is the world's leading provider of independent credit ratings. Our ratings are essential to driving growth, providing transparency and helping educate market participants so they can make decisions with confidence. We have more than 1 million credit ratings outstanding on government, corporate, financial sector and structured finance entities and securities. We offer an independent view of the market built on a unique combination of broad perspective and local insight. We provide our opinions and research about relative credit risk; market participants gain independent information to help support the growth of transparent, liquid debt markets worldwide.
S&P Global Ratings is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com/ratings.
Media Contact
Christina Twomey, Washington (1) 410 382 3316
christina.twomey@spglobal.com
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SOURCE S&P Global Ratings
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