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Nationally Recognized Statistical Rating Organization (NRSRO)

The Securities and Exchange Commission (SEC), an agency of the U.S. government, designates some firms as Nationally Recognized Statistical Rating Organizations (NRSROs). To qualify as an NRSRO, a firm must apply for the designation and be an organization that issues credit ratings for debt securities issued by other firms, municipalities, states, or countries. Some NRSROs rate all of these kinds of debt securities, while others are more specialized or limited. To qualify as an NRSRO, these ratings must be generally recognized by financial markets as credible and generally reliable, and the rating firm must use systematic procedures to evaluate credit worthiness.

As of December 2016, there were 10 recognized NRSROs:

  • A.M. Best Rating Services, Inc.
  • Dominion Bond Rating Services, Inc.
  • Egan-Jones Ratings Company
  • Fitch Ratings, Inc.
  • HR Ratings de México, S.A. ...
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