Defendant Name: Morningstar Credit Ratings, LLC

Defendant Type: Subsidiary of Public Company

Document Reference: LR-25409

Document Details

Legal Case Name SEC v. Morningstar Credit Ratings, LLC
Document Name SEC Obtains Final Judgment Against Former Credit Rating Agency Charged with Disclosure and Internal Controls Failures Relating to Undisclosed Model Adjustments
Document Date 07-Jun-2022
Document Format Civil Proceeding
Case Number 21-cv-01359
Federal District Court New York, Southern District of New York
Allegation Type Other
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
None Specified
Monetary Penalties:

Civil Penalty

Individual:     $1,150,000.00 Shared:    

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)."
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."