SEC Advisory Panel Seeks More Credit Rating Agency Disclosures (1)

The SEC should make credit rating agencies share more about how they rate corporate bonds amid concerns about how the organizations are paid, according to a commission advisory panel.

Investors would benefit from enhanced disclosures about methodologies the agencies use for ratings, the Securities and Exchange Commission’s Fixed Income Market Structure Advisory Committee said in a recommendation Monday. The information should include details about qualitative inputs and the rationales behind decisions to issue ratings that changed significantly from preliminary calculations, according to the recommendation.

The panel gave the guidance to the SEC on a 16-1 vote after months exploring potential ...