Report on the Role and Function of Credit Rating Agencies in the Operation of the Securities Markets

Report Pursuant to Section 702 of the Sarbanes-Oxley Act of 2002 — regarding the role and function of credit rating agencies in the operation of the securities markets. Specifically, the report addresses the role of credit rating agencies in the evaluation of issuers of securities; the importance of that role to investors and the functioning of the securities markets; any impediments to the accurate appraisal by credit rating agencies of the financial resources and risks of issuers of securities; any barriers to entry into the business of acting as a credit rating agency, and any measures needed to remove such barriers; any measures which may be required to improve the dissemination of information concerning such resources and risks when credit rating agencies announce credit ratings; and any conflicts of interest in the operation of credit rating agencies and measures to prevent such conflicts or ameliorate the consequences of such conflicts.