05:30 AM EDT, 09/05/2024 (MT Newswires) -- (Updates with response from HR Ratings in the sixth paragraph.)

The Securities and Exchange Commission said Tuesday it is charging six national statistical rating organizations for failures to maintain and preserve electronic communications.

The SEC said the firms admitted to violating federal recordkeeping laws and agreed to pay combined penalties of more than $49 million.

Moody's Investors Service ( MCO ) and S&P Global Ratings each agreed to pay $20 million while Fitch Ratings agreed to pay an $8 million civil penalty.

A.M. Best Rating Services agreed to pay $1 million, HR Ratings de Mexico, $250,000, and Demotech $100,000.

Four of the agencies are also required to retain a compliance consultant and review their policies and procedures on retention of electronic communications on personal devices.

"Over the past year, HR Ratings has significantly strengthened its electronic recordkeeping policies and procedures," a spokesperson for HR Ratings told MT Newswires. "The settlement with the SEC underscores our firm commitment to upholding regulatory standards in every jurisdiction where we operate."

The other agencies did not immediately reply to MT Newswires' requests for comment.

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