NAIC proposal sees insurers snub debt rated by smaller agencies
Ability of some corporates to raise capital ‘materially impaired’, bankers say
A proposal that would allow the National Association of Insurance Commissioners to overrule credit ratings is already causing insurers to avoid buying debt rated by smaller rating agencies. Issuers that rely on private transactions are finding their access to markets diminished as a result.
The proposal, which would empower the NAIC’s Securities Valuation Office (SVO) to revise ratings it deems too lenient, will be debated on August 14 at the body’s summer meeting in Seattle. Already, though
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