June 7, 2022

Morningstar Credit Ratings, LLC will pay a civil monetary penalty of $1,150,000 for disclosure and internal controls violations related to rating commercial mortgage-backed securities. Analysts were permitted to adjust key stresses in the rating model, without disclosing they had done so, impacting 30 transactions from 2015 to 2016. Additionally, effective internal controls were neither established nor enforced for these adjustments from 2015 to 2017, impacting 31 transactions. SEC

Tagged in: Misrepresentations, Securities Fraud,