Regulatory Recognitions

Kroll Bond Rating Agency, Inc. (“KBRA”) has obtained the status described below with respect to each of the following regulatory authorities:  

U.S. Securities and Exchange Commission (“SEC”)
KBRA became registered with the SEC on February 11, 2008.  For further information, please refer to KBRA’s Form NRSRO, which is available at  www.krollbondratings.com/regulatory.

European Securities and Markets Authority (“ESMA“)
KBRA was certified by ESMA effective March 20, 2013. As a certified CRA, credit ratings issued by KBRA can be used for regulatory purposes according to EU legislation.  KBRA was certified following the European Commission’s recognition of the equivalence of the U.S. legal and supervisory framework to the requirements of the EU’s Credit Rating Agency (“CRA”) Regulation in October 2012.  For further information, please refer to ESMA’s Public Statement 2013/336 dated March 20, 2013 at  http://www.esma.europa.eu/page/CRA-documents.

U.S. Department of Labor (“DOL”)
KBRA is a “Rating Agency” as defined in the Notice published by the DOL in the Federal Register (78 FR 41090, July 9, 2013) (the “Notice”), which contains an exemption issued by the DOL from certain of the prohibited transaction restrictions of the Employee Retirement Income Security Act of 1974 and/or the Internal Revenue Code of 1986.

Specifically, KBRA:

  • Is currently recognized by the U.S. Securities and Exchange Commission (“SEC”) as a nationally recognized statistical ratings organization (“NRSRO”);
  • Has indicated on its most recently filed SEC Form NRSRO that it rates “issuers of asset-backed securities”;and
  • Has had, in the 12 month period preceding the initial issuance of a security, at least three (3) “qualified ratings engagements”, as such term is defined in the Notice.

For further information, please refer to the Notice at  http://www.gpo.gov/fdsys/pkg/FR-2013-07-09/html/2013-16386.htm .

National Association of Insurance Commissioners (“NAIC”)
KBRA was added to the NAIC Credit Rating Provider (“CRP”) List, beginning with the July 1, 2012 publication of the Purposes and Procedures Manual of the NAIC Securities Valuation Office.  For further information on the NAIC’s use of credit ratings, please refer to  www.naic.org.