The credit rating agency task force of the Securities Industry and Financial Markets Association (SIFMA) supports the proposal presented by the Securities and Exchange Commission (SEC) today, according to a SIFMA release.

The SEC’s proposal deals with rules relating to nationally recognized statistical rating organizations that allow the continued use of ratings.

Co-chair of the task force Deborah Cunningham said that the force agrees “that attention should be paid to over-dependence on ratings,” as it is important to prevent “overreliance on ratings in SEC regulations, as well as in investor guidelines, state laws, Basel II, and bilateral contracts.”

The SEC will publish a written proposal, which will allow reliance on ratings as appropriate in the areas of Rule 2a-7 and net capital rules, according to the discussions at the meeting.

The task force intends to review and fully comment on the written propels.

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