U.S. regulatory reform means changes for the credit rating business, including exposing it to new liabilities, says Fitch Ratings.

The rating agency said Monday that since the onset of the financial crisis it has focused on improving the rating process, but that it expects to make a range of changes in response to the United States, and other reform initiatives, to provide greater transparency, more rigorous processes, and heightened verification of the information provided by issuers and underwriters to raters.

“While the differences will be most noticeable across ratings of mortgage-backed securities, asset-backed securities and other structured products, the ratings processes for corporate credits, financial institutions, municipalities and even sovereigns will also be strengthened,” it says.

Moreover, it notes that under the U.S. reform provisions, issuers will have to get its permission to include ratings in registration statements or prospectuses. However, it fears that this would expose the firm to new liability.

“Fitch is not willing to take on such liability without a complete understanding of the ramifications of that liability to Fitch’s business and the means by which Fitch may be able to effectively mitigate the risks,” it says, adding that it will continue to publish credit ratings and research, but will not consent to including its credit ratings in prospectuses and registration statements.

Last week, the Canadian Securities Administrators proposed their own new regulatory regime for rating agencies. That proposal would require rating agencies to adopt a code of conduct in line with international standards, and establish certain policies and procedures, but it does not seek to impose greater civil liability upon them.

IE