BROWSE

Nationally Recognized Statistical Ratings Organization (NRSRO)

What is 'Nationally Recognized Statistical Ratings Organization - NRSRO'

The formal term to describe credit rating agencies that provide credit ratings that are used by the U.S. government in several regulatory areas. Ratings provided by Nationally Recognized Statistical Ratings Organizations (NRSRO) are used frequently by investors and are used as benchmarks by federal and state agencies. Generally, to be considered an NRSRO, the agency has to be "nationally recognized" in the U.S. and provide reliable and credible ratings. Also taken into consideration is the size of the credit rating agency, operational capability and its credit rating process.

Explaining 'Nationally Recognized Statistical Ratings Organization - NRSRO'

Some examples of Nationally Recognized Statistical Ratings Organizations (NRSRO) include Moody's Investors Service Inc, Standard and Poor's Inc, Fitch Inc, Dominion Bond Rating Service Limited (DBRS), and A.M. Best Company Inc.


Further Reading


Regulation of rating agencies
onlinelibrary.wiley.com [PDF]
… or private utility or a self-regulatory organization assigns Nationally Recognized Statistical Rating Organizations to determine … of HR 4173 was proposed by Senator Al Franken, became known as the … the lack of competition in the global rating industry and acknowledged its intent …

Markets: The credit rating agenciesMarkets: The credit rating agencies
www.aeaweb.org [PDF]
… or private utility or a self-regulatory organization assigns Nationally Recognized Statistical Rating Organizations to determine … of HR 4173 was proposed by Senator Al Franken, became known as the … the lack of competition in the global rating industry and acknowledged its intent …

The (continuing) information problems in structured financeThe (continuing) information problems in structured finance
jsf.pm-research.com [PDF]
… or private utility or a self-regulatory organization assigns Nationally Recognized Statistical Rating Organizations to determine … of HR 4173 was proposed by Senator Al Franken, became known as the … the lack of competition in the global rating industry and acknowledged its intent …

Lessons from the current financial crisis: Should credit rating agencies be re-structured?Lessons from the current financial crisis: Should credit rating agencies be re-structured?
clutejournals.com [PDF]
… or private utility or a self-regulatory organization assigns Nationally Recognized Statistical Rating Organizations to determine … of HR 4173 was proposed by Senator Al Franken, became known as the … the lack of competition in the global rating industry and acknowledged its intent …

Credit ratings across asset classes: A≡ ACredit ratings across asset classes: A≡ A
papers.ssrn.com [PDF]
… or private utility or a self-regulatory organization assigns Nationally Recognized Statistical Rating Organizations to determine … of HR 4173 was proposed by Senator Al Franken, became known as the … the lack of competition in the global rating industry and acknowledged its intent …

The credit‐rating agencies and the subprime debacleThe credit‐rating agencies and the subprime debacle
www.tandfonline.com [PDF]
… or private utility or a self-regulatory organization assigns Nationally Recognized Statistical Rating Organizations to determine … of HR 4173 was proposed by Senator Al Franken, became known as the … the lack of competition in the global rating industry and acknowledged its intent …

The credit rating industry: An industrial organization analysisThe credit rating industry: An industrial organization analysis
link.springer.com [PDF]
… or private utility or a self-regulatory organization assigns Nationally Recognized Statistical Rating Organizations to determine … of HR 4173 was proposed by Senator Al Franken, became known as the … the lack of competition in the global rating industry and acknowledged its intent …



Q&A About Nationally Recognized Statistical Ratings Organization (NRSRO)


Who uses NRSROs?

Federal and state agencies use NRSROs to make decisions about investments, loans, and other financial instruments.

What is a Nationally Recognized Statistical Ratings Organization (NRSRO)?

A Nationally Recognized Statistical Ratings Organization (NRSRO) is an organization that provides credit ratings that are used by the U.S. government in several regulatory areas.

How does a credit rating agency become nationally recognized?

To be considered nationally recognized, the agency must be "nationally" known in the United States and provide reliable and credible ratings.

Are there any requirements for becoming nationally recognized?

Yes, there are requirements for becoming nationally recognized .

Why do investors use NRSROs?

Investors use NRSROs because they are reliable and credible sources of information on credit risk of fixed income securities.

What are some examples of Nationally Recognized Statistical Ratings Organizations (NRSRO)?

Moody's Investors Service Inc., Standard & Poor's Inc., Fitch Inc., Dominion Bond Rating Service Limited (DBRS), and A.M. Best Company Inc..

Can anyone apply to become a Nationally Recognized Statistical Ratings Organization (NRSRO)?

No, only certain organizations can apply to become one .

What kind of criteria must a credit rating agency meet to become nationally recognized?

The criteria include being "nationally" known in the United States , providing reliable and credible ratings , having enough operational capability , as well as having a good process for determining credit ratings .

What does it mean for an organization to be "nationally recognized"?

It means that the organization has been deemed reliable by regulators or others who have more knowledge than most people about the subject matter at hand .