​ SEC Okays Seven Nationally Recognized Statistical Ratings Organizations. We learned from Investment News yesterday that the Securities & Exchange Commission granted registrations for 7 ratings agencies, or NRSROs. In addition to the "​Big 3" -- Standard & Poor'​s, Moody'​s and Fitch -- the Commission now allows ratings from A.​M. Best, Canadian DBRS, Japan Credit Rating Agency, and Japan'​s Rating and Investment Information. The expansion holds particular significance for money market funds since Rule 2a-​7 of the Investment Company Act of 1940 requires "​First Tier" holdings to have at least two top ratings. Money funds may only invest in securities with one of the top two short-​term ratings, and must limit investments to 5% for First Tier and 1% for Second Tier (​with a 5% total in Second Tier). An expansion in the number of agencies makes the "​First Tier" hurdle slightly more obtainable.

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