AFP President Jim Kaitz Commends Senate Banking Committee Action on the Credit Rating Agency Reform Act of 2006

Washington, DC - August 2, 2006 - Jim Kaitz, President of the Association for Financial Professionals (AFP) issued the following statement regarding the adoption of The Credit Rating Agency Reform Act of 2006 by the Senate Committee on Banking, Housing and Urban Affairs.

"We are pleased that the Senate Banking Committee took this important action continuing the process to deal with the problems associated with the Credit Ratings market," said Jim Kaitz, AFP President and CEO. "Today's action is the next critical step following the House of Representatives passage of its version of the bill to address the lack of competition in the credit ratings market. On behalf of our membership, we commend Chairman Shelby and Senator Sarbanes for moving this important legislation forward. We urge the full Senate to take action on the bill as soon as possible," Kaitz concluded.

AFP's research has consistently shown that confidence in rating agencies and the ratings they issue is low. For over three years, AFP has called for reform of the credit ratings market. The SEC's current recognition process has created an artificial barrier to entry to the credit ratings market resulting in a lack of competition and innovation. Any reform designed to address concerns about the credit ratings market, either through regulation or voluntary agreement, must include SEC enforcement.

The Credit Rating Agency Reform Act establishes a new registration process setting a clear path to being designated as a Nationally Recognized Statistical Rating Organization (NRSRO). The legislation also provides prudent SEC oversight to ensure that registered credit rating agencies continue to issue credible and reliable ratings.

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The Association for Financial Professionals (AFP) headquartered in Bethesda, Maryland, supports more than 15,000 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.