Defendant Name: DBRS, Inc.

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

Initial Case Details

Legal Case Name In the Matter of DBRS, Inc.
First Document Date 29-Sep-2023
Initial Filing Format Administrative Action
File Number 3-21772
Allegation Type Other

Violations Alleged

Other
• Section 15E(c)(3)(A) Exchange Act; Rules 17g-8(a)(1), 17g-8(a)(2), 17g-7(a)(1)(ii)(B) Exchange Act

Resolutions

First Resolution Date 29-Sep-2023
Headline Total Penalty and Disgorgement $2,000,000

Related Documents:

34-98636 29-Sep-2023 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to 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 September 29, 2023, the SEC instituted settled administrative and cease-and-desist proceedings against DBRS, Inc., stating: "Between July 2019 and November 2022, DBRS had an ineffective internal control structure governing implementation of and adherence to its published procedures and methodologies for determining credit ratings for certain commercial mortgage-backed securities (“CMBS”) multi-borrower transactions."
2023-211_3-21772 29-Sep-2023 Press Release--Administrative Proceeding
SEC Charges Two Credit Rating Agencies, DRBS and KBRA, with Longstanding Recordkeeping Failures
On September 29, 2023, the SEC "announced charges against credit rating agencies DBRS Inc. and Kroll Bond Rating Agency, LLC (KBRA) for longstanding failures to preserve electronic records, including off-channel communications on personal and work-issued devices. Additionally, the SEC charged DBRS with violating disclosure and internal control provisions of the federal securities laws in rating certain commercial mortgage-backed securities (CMBS). To settle the charges, DBRS agreed to pay $8 million in civil penalties and KBRA agreed to pay $4 million in civil penalties."