Defendant Name: Standard & Poor's Ratings Services

Defendant Type: Subsidiary of Public Company
Public Company Parent: McGraw Hill Financial, Inc.
SIC Code: 2731
CUSIP: 58064510

Initial Case Details

Legal Case Name In the Matter of Standard & Poor's Ratings Services
First Document Date 21-Jan-2015
Initial Filing Format Administrative Action
File Number 3-16348
Allegation Type Other

Violations Alleged

Securities Act
• Sec 17(a)(1)
Other
• Section 15E(c)(3) Exchange Act; Rules 17g-2(a)(2)(iii), 17g-2(a)(6) Exchange Act

Resolutions

First Resolution Date 21-Jan-2015
Headline Total Penalty and Disgorgement $42,000,000

Related Documents:

2015-10 21-Jan-2015 Press Release--Administrative Proceeding
SEC Announces Charges Against Standard & Poor's for Fraudulent Ratings Misconduct
On January 21, 2015, the SEC issued a Press Release that stated: "The Securities and Exchange Commission today announced a series of federal securities law violations by Standard & Poor's Ratings Services involving fraudulent misconduct in its ratings of certain commercial mortgage-backed securities (CMBS)."
33-9705 21-Jan-2015 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933 and Sections 15E (d) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On January 21, 2015, the SEC instituted settled administrative and cease-and-desist proceedings against Standard & Poor's Ratings Services. According to the SEC: "These proceedings involve statements by S&P concerning its methodology for rating conduit/fusion Commercial Mortgage Backed Securities ('CF CMBS'). Conduit/fusion transactions are those that are comprised of geographically diversified pools of at least 20 mortgages loans made to unrelated borrowers. The disclosures at issue concern S&P's application of the Debt Service Coverage Ratio ('DSCR'), a key quantitative metric used to rate CF CMBS transactions."

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