Financial Services Bulletin: OCC Proposes Removal of Credit Rating References


OCC Proposes Removal of Credit Rating References

On Tuesday, November 29, 2011, the Office of the Comptroller of the Currency ("OCC") proposed a rule to remove references to credit ratings from various OCC regulations and related guidance to national banks and federal savings associations in meeting due diligence requirements in assessing credit risk for portfolio investments. The rule stems from Section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 939A requires federal agencies to review regulations that require the use of an assessment of creditworthiness of a security or money market instrument and any references to, or requirements, in those regulations regarding credit ratings. Section 939A then requires the federal agencies to modify the regulations identified during the review to substitute any references to, or requirements of, reliance on credit ratings with such standards of creditworthiness that each agency determines to be appropriate.

Read the OCC press release

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