The Securities and Exchange Commission issued for public comment three rule proposals designed to downgrade the role of credit rating agencies on July 1, 2008.

The Commission voted unanimously on June 25 to issue a third set of proposed changes, which the SEC said were due in part to concerns the agency?s use of the ratings may have contributed to a blind reliance on them on the part of investors. The first two sets of proposed changes were issued in SEC Release No. 34?57967, Proposed Rules for Nationally Recognized Statistical Organizations, on June 16.

• SEC Release No. 34-58070, References to Rating of Nationally Recognized Statistical Rating Organizations, proposes to amend five rules under the Investment Company Act of 1940 and the Investment Advisers Act of 1940, which rely on credit ratings.
• SEC Release No. 33-8940, Security Ratings, proposes to replace rule and form requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.
• SEC Release No. IC-28327, References to Ratings of Nationally Recognized Statistical Rating Organizations, would amend various rules and forms under the Securities Exchange Act of 1934.

Comments are due to the SEC by September 5, 2008.