Kroll Bond Rating Agency Inc. agreed to pay more than $2 million to the U.S. Securities and Exchange Commission to settle charges that its internal controls failed to prevent inconsistencies in ratings of commercial mortgage-backed securities and collateralized loan obligations.
Kroll permitted its CMBS analysts to make adjustments that had material effects on the final ratings of bond deals but did not require any analytical method for determining when and how those adjustments should be made, the SEC said in a statement Tuesday. Further, the regulator charged that there was no requirement for recording the rationale for those adjustments.
“The ...
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