AFP Applauds Committee Passage of The Credit Rating Agency Duopoly Relief Act

Washington, DC – June 14, 2006 – The Association for Financial Professionals (AFP) commends today’s approval by the House Financial Services Committee of The Credit Rating Agency Duopoly Relief Act. (HR 2990).

"Today’s action by the House Financial Services Committee is a critical step in reforming the process by which credit rating agencies are recognized. The Credit Rating Agency Duopoly Relief Act of 2005 is certain to foster competition, stimulate innovation and creativity and improve the quality of information available to investors. On behalf of our membership, we applaud Chairman Oxley and Capital Markets Subcommittee Chairman Baker for their steadfast efforts to address the lack of effective oversight and competition in the credit ratings market," said Jim Kaitz, AFP President and CEO.

AFP’s research has consistently shown that confidence in rating agencies and their ratings is low and has continued to diminish over the past few years. The SEC’s current recognition process has created an artificial barrier to entry to the credit ratings market. This barrier has led to a concentration of market power with the recognized rating agencies and a lack of competition and innovation in the credit ratings market.

For over three years, AFP has called for reform of the credit ratings market. During that time, AFP has provided testimony to the Senate Banking Committee, and the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises. In its June 2005 testimony before the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, AFP expressed its support of the Credit Rating Agency Duopoly Relief Act of 2005 (H.R. 2990). AFP has also provided extensive comments to the Securities and Exchange Commission as the Commission studied the issue.

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The Association for Financial Professionals (AFP) headquartered in Bethesda, Maryland, supports more than 14,000 individual members from a wide range of industries throughout all stages of their careers in various aspects of treasury and financial management. AFP is the preferred resource for financial professionals for continuing education, financial tools and publications, career development, certifications, research, representation to legislators and regulators, and the development of industry standards. For more information about AFP visit http://www.AFPonline.org/