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 its acquisition of DBRS, Inc. (DBRS). At that time, each of DBRS and MCR was registered with the U.S. Securities and Exchange Commission (SEC) as a nationally recognized statistical rating organization (NRSRO). DBRS and MCR are in the process of integrating their credit rating services under the brand name DBRS Morningstar.
On November 15, 2019, MCR filed an amendment to its Form NRSRO with the SEC withdrawing its NRSRO registration effective December 30, 2019. Also on that date, DBRS filed an amendment to its Form NRSRO with the SEC to identify MCR as a credit rating affiliate of DBRS, in which capacity MCR operates today. Credit ratings determined by MCR on financial institutions (e.g., banks), corporate issuers and asset-backed securities on, before or after December 30, 2019 (and not previously withdrawn) are now deemed issued by DBRS in accordance with DBRS’s Form NRSRO and, thereby, retain their status as NRSRO ratings. For information on the integration of DBRS and MCR credit rating procedures and methodologies, please see Exhibit 2 to DBRS’s Form NRSRO, which can be found at https://www.dbrs.com/regulatory/.
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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).
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