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US securities regulator sues Morningstar over alleged disclosure, internal controls violations

The U.S. Securities and Exchange Commission (SEC) on Tuesday sued Morningstar Credit Ratings LLC for allegedly violating U.S. securities laws in rating commercial mortgage-backed securities, the regulator said in a statement.

FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst

WASHINGTON: The U.S. Securities and Exchange Commission (SEC) on Tuesday sued Morningstar Credit Ratings LLC for allegedly violating U.S. securities laws in rating commercial mortgage-backed securities, the regulator said in a statement.

Morningstar allegedly violated disclosure and internal controls requirements in 30 commercial mortgage-backed securities transactions from 2015 to 2016 when the agency allowed analysts to make undisclosed adjustments to key stresses in its modeling, the SEC said.

Counsel for Morningstar could not be reached immediately for comment.

(Reporting by Chris Prentice; Editing by Chris Reese)

US securities regulator sues Morningstar over alleged disclosure, internal controls violations Source link US securities regulator sues Morningstar over alleged disclosure, internal controls violations

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