The U.S. SEC has adopted two rules that require NRSROs to make rating histories available: Rule 17g-2(d)(2) (the “10% Rule”) and Rule 17g-2(d)(3) (the “100% Rule”). These two rules are summarized below. The full text of the rules is available here.
The 10% Rule: Under the 10% Rule, an NRSRO is required to publish complete rating histories for a random sample of 10% of its outstanding credit ratings that were paid for by the obligor being rated or the issuer, underwriter or sponsor of the security being rated, regardless of when the obligor or instrument was initially rated. Securities included in the sample are selected on a random basis, for each class of credit ratings for which the NRSRO is registered and for which it has issued 500 or more ratings. The ratings action history must be disclosed within 6 months of the date of the last rating action.
Click here to download the 10 % XBRL (eXtensible Business Reporting Language) sample ratings history file.
The 100% Rule: Under the 100% Rule, an NRSRO must disclose and keep publicly available on its corporate Internet Web site rating histories for each outstanding credit rating that was initially determined by the NRSRO on or after June 26, 2007. The 100% Rule applies to all credit ratings assigned by NRSROs, regardless of who paid for the credit rating. The ratings action information must be disclosed: (a) within 12 months for rating actions where the rating was paid for by the obligor or the issuer, underwriter or sponsor of a security; and (b) within 24 months for other rating actions.
Click here to download the 100% XBRL (eXtensible Business Reporting Language) ratings history file.