February 25, 2003

Following up on issues identified

Following up on issues identified in its January 24th report to Congress on the state of the credit rating industry, the SEC approved a 4th credit rating agency yesterday. Canada’s Dominion Bond Rating Service now joins Moody’s, S&P and Fitch to rate debt in the US.

As noted in the SEC’s January 24th report, a lack of competition might be hurting the ability of investors to get the most timely and accurate ratings from these agencies. In about a month, the SEC expects to issue a concept release on the possible restructuring of how the credit rating industry is regulated. The SEC’s Jan. 24th report is at

For subscribers, we have posted sample disclosures regarding corporate goverance in the proxy statement and how companies disclose SEC enforcement actions in our “Disclosure” practice area at