SEC Questions Egan-Jones Over Bid to Again Rate Government Debt

Credit rating firm Egan-Jones Rating Co. wants to regain its ability to grade government debt and asset-backed securities after a ban more than a decade ago, but Wall Street’s top regulator isn’t so sure.

The Securities and Exchange Commission Monday expressed doubts about the small firm’s ability to rate these products, saying Egan-Jones’ application and other non-public information available to the SEC “raises questions about the adequacy of EJR’s financial and managerial resources to consistently produce credit ratings with integrity.”

The SEC said in a filingit will hold a hearing on the matter and decide by Aug. 12 whether ...