Six rating agencies to pay over $49 mln over recordkeeping failures, SEC says (updated)

Moodys

03/09/2024 22:11

(Updates with details from SEC statement, charges)
       WASHINGTON, Sept 3 (Reuters) - Six credit rating
agencies agreed to pay a total of more than $49 million in civil
penalties to settle U.S. Securities and Exchange Commission
charges they broke recordkeeping rules, the regulator said on
Tuesday.
        Moody's Investors Service  MCO.N , S&P Global Ratings
 SPGI.N , Fitch Ratings, HR Ratings de Mexico, A.M. Best Rating
Services and Demotech each admitted to significant failures by
the firms and personnel to maintain and preserve electronic
communications, the SEC said.
  
        Moody's and S&P agreed to pay $20 million each, while
Fitch agreed to pay $8 million, the SEC said.    A.M. Best will
pay $1 million, HR Ratings de México agreed to pay $250,000 and
Demotech will pay $100,000.
  
        The SEC has hit dozens of firms with fines for failing
to maintain records, largely in connection with employees' use
of text messages and messaging apps such as WhatsApp.
  
        Lawyers for the firms did not respond immediately to
requests for comment.
  

 (Reporting by Jasper Ward and Chris Prentice; Editing by Eric
Beech and Stephen Coates)
 ((Jasper.Ward@thomsonreuters.com;))