DEFINITION of 'Nationally Recognized Statistical Ratings Organization - NRSRO'

The formal term to describe credit rating agencies that provide credit ratings that are used by the U.S. government in several regulatory areas. Ratings provided by Nationally Recognized Statistical Ratings Organizations (NRSRO) are used frequently by investors and are used as benchmarks by federal and state agencies. Generally, to be considered an NRSRO, the agency has to be "nationally recognized" in the U.S. and provide reliable and credible ratings. Also taken into consideration is the size of the credit rating agency, operational capability and its credit rating process.

BREAKING DOWN 'Nationally Recognized Statistical Ratings Organization - NRSRO'

Some examples of Nationally Recognized Statistical Ratings Organizations (NRSRO) include Moody's Investors Service Inc, Standard and Poor's Inc, Fitch Inc, Dominion Bond Rating Service Limited (DBRS), and A.M. Best Company Inc.

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