Why the SEC Has a Problem With Standard & Poor's

The SEC is considering suspending SNP from rating commercial mortgage bonds, marking a significant action against a major credit rater. SNP's parent company, McGraw Hill Financial, is negotiating a settlement with the SEC, which is investigating potential misconduct in rating criteria from 2011. Both McGraw Hill and the SEC have declined to comment. The news has negatively impacted McGraw Hill's shares, and there is anticipation of repercussions for rating agencies criticized for their role in the financial crisis.

What impact might the SEC's decision have on McGraw Hill shares?

What criticism have rating agencies faced according to the text?