SEC Orders Formal Review of Egan-Jones Application to Resume Rating Issuers

Egan-Jones confident its progress will be evident to the SEC Commissioners

Mar. 24, 2026 at 4:51am

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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. Egan-Jones, an independent credit rating firm, previously held these licenses but lost them after the 2008 financial crisis. The SEC review process will enable Egan-Jones to demonstrate its qualifications for reissuance of the two additional licenses.

Why it matters

The SEC's decision on Egan-Jones' application is seen as an important step in increasing competition in the credit rating industry, which has long been dominated by a few major firms. Congress has instructed the SEC to boost competition in the ratings market, and Egan-Jones' application aligns with that goal.

The details

Egan-Jones applied for the two additional NRSRO licenses in October 2025 and supplemented the application in January 2026. The SEC's formal review process will enable Egan-Jones to demonstrate that it meets the qualifications for reissuance of the licenses. Unlike the major credit rating firms that are paid by issuers, Egan-Jones' ratings are primarily paid for by investors, which helps assure its independence.

  • On October 7, 2025, Egan-Jones applied for two additional NRSRO licenses.
  • On January 14, 2026, Egan-Jones supplemented its application.
  • The SEC must decide on the application by August 12, 2026.

The players

Egan-Jones Ratings Company

An independent credit rating firm founded in 1995 that offers timely and accurate credit ratings and proxy services.

Securities and Exchange Commission (SEC)

The U.S. government 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 Egan-Jones' application and qualifications during the formal review process and must decide by August 12, 2026 whether to approve Egan-Jones' request to resume rating issuers of asset-backed securities and government securities.

The takeaway

Egan-Jones' application to resume rating issuers of asset-backed securities and government securities represents an opportunity to increase competition in the credit rating industry, which has long been dominated by a few major firms. The SEC's formal review process will enable Egan-Jones to demonstrate its qualifications and potentially expand the range of securities it rates.