Sifma creates task force to study current credit rating agency model

By Angela McDaniels

Tacoma, Wash., April 22 - The Securities Industry and Financial Markets Association (Sifma) has formed an industry-wide, investor-led task force that will examine credit ratings issues, according to an association news release.

"This task force will take an integrated approach to exploring the credit rating system, including key issues such as the current use and quality of ratings, the issuer-pays model and rating agency independence," Tim Ryan, president and chief executive officer of Sifma, said in the release. "Ensuring an open, competitive and more transparent credit rating system will be an important step towards restoring investor confidence and trust in our markets."

Sifma said its goal is to formalize and advance the dialogue between its members and rating agencies that took place during the past year through a single group that will focus on this issue. Additionally, the task force will work together with government officials, legislators, regulators and multi-lateral authorities.

The task force will be led by Boyce Greer, president of the fixed income and asset allocation division at Fidelity, and Deborah Cunningham, chief investment officer at Federated Investors.

Individuals participating on the task force will lend expertise in structured finance, municipals, short-term debt ratings and risk among key areas, the release stated. AllianceBernstein, JPMorgan Chase, Citigroup, Vanguard and Schroders are among the two-dozen participating firms.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.