• SEC Proposes Mandatory Credit Ratings Disclosure
  • December 14, 2009 | Authors: Danielle Carbone; Robert Evans; Stuart K. Fleischmann; Joel S. Klaperman
  • Law Firm: Shearman & Sterling LLP - New York Office
  • The U.S. Securities and Exchange Commission (“SEC”) proposed new rules that would require issuers to make disclosures about their credit ratings in prospectuses for registered public offerings if they use a credit rating to market their securities. The proposed rules mark a shift in the SEC’s disclosure policy on credit ratings from its current policy of permitting voluntary disclosure to one of mandating disclosure. If adopted as proposed, the rules would significantly add to the disclosure about credit ratings included in registration statements. The proposed rules would apply to registered public offerings by domestic issuers, foreign private issuers and closed-end funds.