SEC’s Dodd-Frank credit ratings interpretation critiqued

Author: | Published: 1 Sep 2011

The SEC did not interpret Dodd-Frank's Section 939A requirement to remove credit ratings from short-form eligibility criteria to decrease the number of short-form issuers. New rules adopted on July 26 may do just the opposite, according to US counsel.

In response to 48 comment letters from law firms, companies and others, the Securities and Exchange Commission (SEC) amended its new rules on short form registration requirements for non-convertible debt securities issuers (Form S-3 and Form F-3) to make them less restrictive.

The original proposal made in February featured only one alternative for the transaction requirement – an issuance of at least $1 billion in non-convertible securities for cash in registered...