DEFINITION of 'Nationally Recognized Statistical Ratings Organization - NRSRO'

A nationally recognized statistical ratings organization (NRSRO) is a credit rating organization that provides an assessment of the creditworthiness of a firm or financial instrument(s), and is registered with the Securities and Exchange Commission (SEC). Not all credit rating organizations are NRSROs. As of May 2018, there are ten NRSROs registered with the SEC. The SEC's Office of Credit Ratings administers its rules relating to NRSROs.

BREAKING DOWN 'Nationally Recognized Statistical Ratings Organization - NRSRO'

Generally, to be considered a nationally recognized statistical ratings organization (NRSRO), the SEC must deem the agency to be "nationally recognized" in the U.S., and it must provide reliable and credible credit ratings. Also taken into consideration by the SEC, is the size of the credit rating agency, operational capability and the agency's financial resources. The credit ratings provided by NRSROs are used by the U.S. government in several regulatory areas, and are also used as benchmarks by federal and state agencies. Investors also refer to ratings by NRSROs. Some examples of current nationally recognized statistical ratings organizations include Moody's Investors Service Inc., S&P Global Ratings, Fitch Ratings Inc. and Morningstar Credit Ratings, LLC.

  1. Moody's

    An independent research company, Moody's provides economic analysis ...
  2. Credit Rating

    A credit rating is an assessment of the creditworthiness of a ...
  3. Securities And Exchange Commission ...

    The Securities and Exchange Commission (SEC) is a U.S. government ...
  4. Fitch Ratings

    An international credit rating agency based out of New York City ...
  5. Credit Reference

    Credit references can be a credit report or documented letter ...
  6. SEC Form 18

    SEC form 18 is an SEC filing that is more commonly known as the ...
Related Articles
  1. Investing

    What Is A Corporate Credit Rating?

    Is the bond you're buying investment grade, or just junk? Find out how to check the score.
  2. Financial Advisor

    How To Get A Job At The SEC

    Want to make a good living taking on those renegade trading rascals on Wall Street? Here are some tips to help you get in the door at the SEC.
  3. Personal Finance

    Spotting Credit-Repair Scams

    Credit repair scams are common in today's debt-reliant world. Don't be a victim!
  4. Insights

    The Impact of a Fed Interest Rate Hike

    The Federal Reserve raised benchmark interest rates. With so much attention on the Fed's policy, here's what happens when the Fed hikes rates.
  5. Personal Finance

    Analyzing a Career in Credit Analysis

    If you're a number-cruncher and responsibility doesn't scare you, this could be the job for you.
  6. Tech

    How the Actions of the SEC Impact Cryptocurrency Prices

    Cryptocurrencies are characterized by volatility, and the SEC seems to be a contributing factor.
  7. Personal Finance

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  8. Personal Finance

    Take the Right Steps to Build Excellent Credit

    There are several things you can do to protect and improve your credit score.
  9. Personal Finance

    4 Personal Financial Tips for Young Professionals

    Young professionals should consider these four tips to establish a solid financial foundation.
  10. Insights

    Whole Foods 365: The Economics of Discount Organic

    Whole Foods Market is expanding its brand to create a chain of discount natural food stores called 365 by Whole Foods Market. With the high cost of producing, shipping and selling organic food, ...
  1. How does FINRA differ from the SEC?

    Discover how Securities and Exchange Commission (SEC) is different from the Financial Industry Regulatory Authority (FINRA) ... Read Answer >>
  2. What does investment grade mean?

    Investment grade refers to the quality of a company's credit rating, which is based upon their financial strength, future ... Read Answer >>
Trading Center