SEC Orders Formal Review of Egan-Jones' Application to Resume Rating Asset-Backed and Government Securities

Egan-Jones CEO says firm is confident in its qualifications and ability to enhance competition in the ratings market.

Mar. 24, 2026 at 5:33am

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The Securities and Exchange Commission has issued an order to conduct a formal review of Egan-Jones Ratings Company's application to resume rating issuers of asset-backed securities and government securities. The SEC must decide on Egan-Jones' application by August 12, 2026, determining whether to deny re-registration for these two classes of securities. Egan-Jones' CEO says the firm will provide all necessary information to support its application and is confident its progress will be evident to the Commission.

Why it matters

The formal review process will enable Egan-Jones to demonstrate its qualifications for the two additional licenses it previously held. Increasing competition in the ratings market is a stated priority for Congress, and Egan-Jones' application aligns with that goal. Unlike other major credit rating firms, Egan-Jones is primarily paid by investors rather than issuers, which helps ensure its independence.

The details

On October 7, 2025, Egan-Jones applied for two additional NRSRO licenses it previously held, for asset-backed securities and government/sovereign/municipal securities. The SEC issued an order on March 23, 2026, initiating a formal review process to determine whether to deny re-registration for these two classes of securities by August 12, 2026. Egan-Jones has made progress in its internal and compliance processes and is confident the Commission will recognize its qualifications.

  • On October 7, 2025, Egan-Jones applied for two additional NRSRO licenses.
  • On January 14, 2026, Egan-Jones supplemented its application.
  • On March 23, 2026, the SEC issued an order for a formal review of Egan-Jones' application.
  • By August 12, 2026, the SEC must decide on Egan-Jones' application and whether to deny re-registration for the two classes of securities.

The players

Egan-Jones Ratings Company

An NRSRO founded in 1995 that offers timely and accurate credit ratings and proxy services, with a focus on investor-paid ratings to ensure independence.

Securities and Exchange Commission (SEC)

The U.S. federal agency responsible for regulating the securities industry, including credit rating agencies.

Sean Egan

The co-founder and CEO of Egan-Jones Ratings Company.

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What they’re saying

“This is the SEC process, and we will provide all information necessary to support our application to resume rating these two classes of issuers of securities. Egan-Jones has made great strides in our internal and compliance processes, and we are confident that our progress will be evident to the Commission.”

— Sean Egan, Co-founder and CEO, Egan-Jones Ratings Company

What’s next

The SEC Commissioners will review the information provided by Egan-Jones and make a decision on the firm's application by August 12, 2026.

The takeaway

The formal review process represents an opportunity for Egan-Jones to demonstrate its qualifications and potentially increase competition in the credit ratings market, which is a priority for Congress. The outcome could impact the diversity of rating providers available to investors and issuers.