Egan-Jones Responds to SEC Order for Formal Review of Application to Resume Rating of Issuers of Asset-Backed Securities and Government Securities

Core Viewpoint - Egan-Jones Ratings Company is undergoing a formal review by the SEC regarding its application to resume rating issuers of asset-backed securities and government securities, with a decision expected by August 12, 2026 [1][2]. Group 1: Company Actions and Statements - Egan-Jones has made significant improvements in its internal and compliance processes and is confident that these advancements will be recognized by the SEC [2]. - The company applied for two additional NRSRO licenses on October 7, 2025, which it previously held, specifically for asset-backed securities and government/sovereign/municipal securities [2]. - Egan-Jones aims to enhance competition in the ratings market, aligning with U.S. Congress priorities for increased competition [2]. Group 2: Industry Context - Following the 2008 Credit Crisis, Congress directed the SEC to foster competition in the ratings industry, which remains dominated by legacy firms criticized for their roles in the crisis [3]. - Egan-Jones is prepared to address any inquiries from the SEC during the review process, emphasizing its commitment to independence as its ratings are primarily paid for by investors rather than issuers [2][3].