Defendant Name: Morningstar Credit Ratings, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Morningstar, Inc.
SIC Code: 6282
CUSIP: 61770010

Initial Case Details

Legal Case Name SEC v. Morningstar Credit Ratings, LLC
First Document Date 16-Feb-2021
Initial Filing Format Civil Proceeding
Case Number 21-cv-01359
Allegation Type Other
Federal District Court New York, Southern District of New York

Violations Alleged

Other
• Sections 15E(b)(2)(A), 15E(c) (3)(A) Exchange Act; Rules 17g-1(f), 17g-7(a)(1)(ii)(B) Exchange Act

Resolutions

First Resolution Date 07-Jun-2022
Headline Total Penalty and Disgorgement $1,150,000

Related Documents:

comp-pr2021-29 16-Feb-2021 Complaint
Complaint
The SEC stated: "Morningstar often lowered the credit enhancement for many classes of certificates of the CMBS transactions that it rated . . . In addition to failing to disclose these stress adjustments, Morningstar failed to establish and enforce an effective internal control structure governing the adjustments."
2021-29 16-Feb-2021 Press Release--Civil Action
SEC Charges Ratings Agency with Disclosure And Internal Controls Failures Relating to Undisclosed Model Adjustments
The SEC stated that: "[It] filed a civil action alleging that former credit ratings agency Morningstar Credit Ratings LLC violated disclosure and internal controls provisions of the federal securities laws in rating commercial mortgage-backed securities (CMBS)."
LR-25030 17-Feb-2021 Litigation Release
SEC Charges Ratings Agency with Disclosure and Internal Controls Failures Relating to Undisclosed Model Adjustments
The SEC stated that: "[It] has filed a civil action alleging that former credit ratings agency Morningstar Credit Ratings LLC violated disclosure and internal controls provisions of the federal securities laws in rating commercial mortgage-backed securities (CMBS)."
LR-25409 07-Jun-2022 Litigation Release
SEC Obtains Final Judgment Against Former Credit Rating Agency Charged with Disclosure and Internal Controls Failures Relating to Undisclosed Model Adjustments
The SEC stated that: "On June 7, 2022, the U.S. District Court for the Southern District of New York entered a final judgment against defendant Morningstar Credit Ratings, LLC ("Morningstar"), a credit rating agency that the SEC charged with violating disclosure and internal controls provisions of the federal securities laws in rating commercial mortgage-backed securities(CMBS) from 2015 to 2017."
judgment25409 07-Jun-2022 Court Docket Document
Final Judgment as to Defendant Morningstar Credit Ratings, LLC
The Court stated: "Defendant Morningstar Credit Ratings, LLC . . . consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint except as to jurisdiction; waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."