Can Egan-Jones make a difference?

The Securities and Exchange Commission has granted Haverford, PA-based Egan-Jones, status as a nationally recognized statistical rating organization (NRSRO). This basically means that it now is a credit rating agency on par with Moody's and Standard & Poor's. The firm comes to the table with a twist: Its business model is strikingly different in that it relies on an investor-paid approach, not an issuer-paid one, notes Investment Dealers' Digest. This addresses what many see as a huge flaw in the current system, the overt conflict of interest when issuers pay for their own ratings. We'll see if Egan-Jones can make a splash.  

For more:
- Here's the Investment Dealers' Digest article

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