CHICAGO, June 9, 2022—Morningstar, Inc. (Nasdaq: MORN) today announced that on June 7, 2022, the United States District Court for the Southern District of New York approved a settlement that fully resolves the civil action filed by the United States Securities and Exchange Commission (SEC) against Morningstar Credit Ratings (MCR), a former Nationally Recognized Statistical Rating Organization (NRSRO), related to certain filing and internal control requirements. These requirements applied to MCR when it was an NRSRO with respect to MCR’s former commercial mortgage-backed securities ratings methodology during the period from 2015 to March 2017.
In January 2022, the court dismissed some of the SEC’s claims and, as part of the settlement MCR did not admit or deny the SEC's remaining claims. Morningstar believes the settlement, which involves paying a civil money penalty of $1.15 million, is in the best interest of the company.
Effective in December 2019, MCR withdrew its NRSRO registration with the SEC, and in 2020, it ceased to operate as a credit rating agency. MCR no longer issues or monitors credit ratings.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $265 billion in assets under advisement and management as of March 31, 2022. The Company has operations in 29 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.
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