SIFMA FORMS GROUP TO EXAMINE CREDIT RATINGS ISSUES

Posted April 22, 2008

NEW YORK – The Securities Industry and Financial Markets Association (SIFMA) has formed an industry-wide, investor-led task force that will examine credit ratings issues.

“Ensuring an open, competitive and more transparent credit rating system will be an important step towards restoring investor confidence and trust in our markets,” says Tim Ryan, President and Chief Executive Officer of SIFMA. “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. Given the global nature of the issues and the concerns voiced by regulators, SIFMA, with its worldwide financial services footprint, has a unique opportunity to be a leader in this space and serve as a catalyst for change.”

SIFMA’s 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 interface with government officials, legislators, regulators, multi-lateral authorities and key credit-rating agencies.

Boyce Greer, President of the Fixed Income and Asset Allocation Division at Fidelity, and Deborah Cunningham, Chief Investment Officer at Federated Investors, will lead the task force, whose members will be drawn from 24 firms, representing a cross-section of the financial services industry. Task force members will lend expertise on structured finance, municipals, short-term debt ratings and risk, among other areas. Participating firms include AllianceBernstein, JPMorgan Chase, Citigroup, Vanguard and Schroders.