JCR Permitted to Call Itself "NRSRO" by the U.S.Securities and Exchange Commission
JCR News
JCR Permitted to Call Itself "NRSRO" by the U.S.Securities and Exchange Commission
May. 24, 2007
On May 23, 2007 (U.S. Eastern Daylight Saving Time) the staffs of the U.S. Securities and Exchange Commission (SEC) approved the issuance of a "no-action letter" to Japan Credit Rating Agency with respect to its representation to the public that it is a Nationally Recognized Statistical Rating Organization (NRSRO).
Issuance of a "no-action letter" has been SEC's traditional means by which the U.S. government agency informs major credit rating organizations that they may hold out as "nationally recognized."
The SEC's decision opens the way for U.S. government agencies to utilize JCR's creditworthiness ratings of bond issuers for their regulatory purposes. Private groups, both in and outside the U.S., are also expected to increase their utilization of JCR's Internet-carried credit rating information.
At the same time, JCR's character as NRSRO means that the rating organization must continue to meet the high professional and ethical standards in its rating activities. This development confirms that JCR is an active participant in the worldwide capital markets doing what it knows best.