SEC Final Rule: Security Ratings
|Comment Deadline||Final Rule Issue||Effective Date|
|March 28, 2011||August 3, 2011||September 2, 2011|
At its July 26, 2011 open meeting, the SEC issued its final rule regarding the removal of references to credit ratings from the Securities Exchange Act of 1933. According to the rule, credit ratings criteria will be replaced by four short-form eligibility tests. The SEC also passed a three-year grandfather provision to assist companies with this transition.<ref>SEC Adopts New Short Form Criteria to Replace Credit Ratings. SEC. Retrieved on July 26, 2011.</ref>
- "The new rules remove the condition for an NRSRO investment grade rating that is included in current short forms, Form S-3 and Form F-3, which are used by eligible issuers to register offerings of non-convertible securities under the Securities Act."
- Companies can be tested for issuer eligibility through four new short-form tests.
- "The final rules also rescind Form F-9, which is the form certain Canadian registrants use to register non-convertible investment grade debt."