Pursuant to Exchange Act Rule 17g-1(i), a nationally recognized statistical
rating organization (NRSRO) must make its current Form NRSRO and information
and documents filed in Exhibits 1 through 9 to Form NRSRO publicly and freely
available on an easily accessible portion of its corporate Internet website
within 10 business days after the date of the Commission Order granting an
initial application for registration as an NRSRO or an application to register
for an additional class of credit ratings and within 10 business days after
filing with or furnishing to, as applicable, the Commission an update of registration,
annual certification, or withdrawal from registration on Form NRSRO.
Exhibits 10 through 13 are not required to be made publicly available
by the NRSRO pursuant to Rule 17g-1(i).
Credit rating performance measurement statistics
Procedures and methodologies used in determining credit ratings
Policies or procedures to prevent the misuse of material, non-public information
Code of ethics
Identification of conflicts of interest
Policies and procedures to address and manage conflicts of interest
Certain information regarding credit analysts and credit analyst supervisors
Certain information regarding the designated compliance officer
On July 2, 2019, Morningstar, Inc., the parent of Morningstar Credit Ratings, L.L.C. (MCR), completed the acquisition of DBRS. Each of DBRS, Inc. and MCR is registered with the U.S. Securities and Exchange Commission ("SEC") as a Nationally Recognized Statistical Rating Organization ("NRSRO").
On November 15, 2019, MCR amended its Form NRSRO and submitted its notice to withdraw its separate NRSRO registration. On November 15, 2019, DBRS, Inc. amended its Form NRSRO and registered MCR as a credit rating affiliate within DBRS, Inc.'s NRSRO registration. For a period of time following the filing of its notice (not less than 45 days), MCR will maintain its separate NRSRO registrant status while also operating as a credit rating affiliate of DBRS. Thereafter, MCR and DBRS will operate solely within DBRS Inc.'s NRSRO registration.
During and as a result of this process, MCR will remain a NRSRO subject to SEC supervision and MCR's credit ratings (outstanding as at the time of the filing of MCR's amended Form NRSRO or issued by MCR thereafter) will remain ratings of a NRSRO.
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Morningstar publishes its current Form NRSRO and Exhibits thereto on this Website. Form NRSRO Exhibit 2 sets forth Morningstar’s definitions of its letter-grade credit ratings and its rating outlooks and a general description of Morningstar’s credit rating procedures and methodologies. These definitions, procedures and methodologies are an integral part of Morningstar’s letter-grade credit ratings and rating outlooks published on this Website.
An NRSRO must disclose on its website its rating actions for ten percent (10%) of its credit ratings, selected on a random basis, for each class of securities for which it is registered as an NRSRO and has 500 or more outstanding issuer-paid credit ratings, with each required disclosure of a new rating action to be made no later than six months after the rating action was taken. Rule 17g-2(d)(2).
An NRSRO must disclose on its website all rating actions for any credit rating initially determined by the NRSRO on or after June 26, 2007 within: (a) 12 months for issuer-paid credit ratings; and (b) 24 months for other (e.g., unsolicited or subscriber-paid) credit ratings. Rule 17g-2(d)(3)(i).
An NRSRO must: (a) maintain on a password-protected website (i) a list of each structured finance security for which it is currently in the process of determining an initial credit rating that was paid for by the issuer, sponsor, or underwriter, and (ii) the website address where the issuer, sponsor, or underwriter of the security represents that the ratings information can be accessed; and (b) provide free and unlimited access to such password-protected website to any NRSRO that provides it with a copy of the required certification. Rules 17g-5(a)(3); 17g-5(e).
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