NAIC Wants To Recognize Dominion As SVO Rating Agency
Regulators have decided to recommend that Dominion Bond Rating Service, Toronto, be recognized as a rating organization for purposes of rating bonds filed with the Securities Valuation Office of the National Association of Insurance Commissioners.
The New York arm of the NAIC is where companies file securities they purchase for their investment portfolios.
Dominion would receive the status of Nationally Recognized Securities Rating Organization, similar to other rating agencies including Fitch Ratings, Standard & Poors Corp., and Moodys Investors Service.
The SVO oversight working group agreed the status should become effective immediately. Wording will be developed for the NAIC purposes and procedures manual later this year and systems would be adjusted in 2004 to reflect this change.
During the discussion, it was noted that if Dominions status was not automatically reflected in the SVOs system, a financial examiner would just request affirmation from the company. The company could receive written confirmation of the rating from Dominion.
Dominion Bond Rating Service is a credit rating agency established in 1976.
Reproduced from National Underwriter Life & Health/Financial Services Edition, October 24, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.