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AFP Press Release
AFP Commends Review of Credit Rating Agencies
Washington, DC - September 26, 2007 – The Association for Financial Professionals (AFP) commends Senate Banking Committee Chairman Christopher Dodd (D-CT) for calling today’s hearing on the role of credit rating agencies in the subprime market.
“I applaud Chairman Dodd for holding today’s hearing. While the focus today is understandably on the subprime mortgage market, credit rating agencies play a critical role in many other segments of the global capital markets. As such, Congress is right to continually question the credibility and reliability of the ratings issued by credit rating agencies,” said Jim Kaitz, AFP President and CEO.
“Since 2001, AFP’s members have identified the same concerns regarding the credit rating agencies that many are raising today. AFP’s members have long been concerned about conflicts of interest in the credit ratings process and the reliability of credit ratings, which is why we worked so closely with Senator Shelby (R-AL), former Senator Sarbanes (D-MD), Representative Kanjorski (D-PA), and former Representative Fitzpatrick (R-PA) to enact the Credit Rating Agency Reform Act of 2006,” Kaitz continued.
Last year, Congress approved the Credit Rating Agency Reform Act of 2006. The reform act gave the SEC additional authority to oversee recognized rating agencies. That authority allows the SEC to impose an element of accountability on rating agencies to produce credible and reliable ratings. The reform act also gave the SEC the authority to address the conflicts of interest issues that many are raising today.
The Association for Financial Professionals (AFP) serves more than 16,000 individual members throughout all stages of their careers in treasury and financial management. Headquartered in Bethesda, MD, AFP provides professional certification, continuing education, research, development of industry standards, financial tools and publications, training and career development and representation to legislators and regulators. AFP’s global reach includes AFP of Canada, a Toronto-based membership organization and gtnews, a London-based, on-line resource for the treasury and finance community
AFP is the daily resource for its members to seek answers, solutions, best practices and collaboration with peers. For more information about AFP, visit www.AFPonline.org