Securities and Exchange Commission denies Egan-Jones bid to expand ratings business

The SEC has blocked Egan-Jones Ratings Company from re-entering two lucrative corners of the credit ratings market, finding that the firm’s application contained inaccuracies about when it actually started rating certain securities. The denial, issued on August 12, marks the latest chapter in a decade-long regulatory saga for the small but persistent agency. Egan-Jones had applied in January 2026 to re-register as a Nationally Recognized Statistical Rating Organization for asset-backed securities and various government debt categories. Seven months later, the SEC said no. What went wrong with the application The rejection centered on two core issues. First, the SEC found that Egan-Jones submitted conflicting Qualified Institutional Buyer certifications. These certifications claimed the firm had been issuing asset-backed securities ratings since December 2019 and March 2020. The problem: the agency didn’t actually begin continuous ABS ratings until mid-2020. The second issue ran deeper. A separate SEC order from March 23, 2026, raised broader concerns about whether Egan-Jones had the financial and managerial resources necessary to maintain the integrity of its credit ratings. A patt...