II 

116TH CONGRESS 

2D SESSION S. 4586 

To amend the CARES Act to require the uniform treatment of nationally 

recognized statistical rating organizations under certain programs carried 

out in response to the COVID–19 emergency, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 16, 2020 

Mr. SCOTT of South Carolina (for himself and Ms. SINEMA) introduced the 

following bill; which was read twice and referred to the Committee on 

Banking, Housing, and Urban Affairs 

A BILL 

To amend the CARES Act to require the uniform treatment 

of nationally recognized statistical rating organizations 

under certain programs carried out in response to the 

COVID–19 emergency, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Access to Emergency 

5 Credit Facilities Act of 2020’’. 


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1 SEC. 2. UNIFORM TREATMENT OF NRSROS. 

2 (a) IN GENERAL.—Section 4003 of the CARES Act 

3 (15 U.S.C. 9042) is amended by adding at the end the 

4 following: 

5 ‘‘(i) UNIFORM TREATMENT OF NRSROS.— 

6 ‘‘(1) DEFINITION.—In this subsection, the term 

7 ‘nationally recognized statistical rating organization’ 

8 has the meaning given the term in section 3(a) of 

9 the Securities Exchange Act of 1934 (15 U.S.C. 

10 78c(a)). 

11 ‘‘(2) TREATMENT.—Subject to paragraph (3), 

12 if, in carrying out this section or any other program 

13 making use of a facility established under section 

14 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)) 

15 in response to COVID–19, the Secretary or the 

16 Board of Governors of the Federal Reserve System 

17 establishes a requirement for an entity, security, or 

18 other instrument to carry a minimum credit rating, 

19 the Secretary or the Board of Governors— 

20 ‘‘(A) may not require that the credit rating 

21 with respect to that entity, security, or other in22 strument be issued by any specific— 

23 ‘‘(i) nationally recognized statistical 

24 rating organization; or 


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1 ‘‘(ii) category or class of nationally 

2 recognized statistical rating organizations; 

3 and 

4 ‘‘(B) shall accept a credit rating that is 

5 issued, before or during the operation of a pro6 gram authorized under this section or section 

7 13(3) of the Federal Reserve Act (12 U.S.C. 

8 343(3)) in response to COVID–19, by any na9 tionally recognized statistical rating organiza10 tion that the Securities and Exchange Commis11 sion has approved to issue a rating for that en12 tity, security, or other instrument. 

13 ‘‘(3) EXCLUSION.— 

14 ‘‘(A) IN GENERAL.—The Secretary or the 

15 Board of Governors may exclude a nationally 

16 recognized statistical rating organization from 

17 the application of paragraph (2) if, in consulta18 tion with the Securities and Exchange Commis19 sion, the Secretary or Board of Governors, as 

20 applicable, determines that— 

21 ‘‘(i) the nationally recognized statis22 tical rating organization is unable to pro23 vide reliable and accurate ratings with re24 spect to a particular asset class; and 


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1 ‘‘(ii) the exclusion is in the public in2 terest. 

3 ‘‘(B) REPORT.—If the Secretary or the 

4 Board of Governors excludes a nationally recog5 nized statistical rating organization from the 

6 application of paragraph (2) under subpara7 graph (A) of this paragraph, the Secretary or 

8 Board of Governors, as applicable, shall, as 

9 soon as practicable after that exclusion, disclose 

10 to the public the reasoning for that exclusion. 

11 ‘‘(4) EFFECTIVE DATE.—The amendments 

12 made by this subsection shall take effect as if en13 acted on March 15, 2020.’’. 

14 (b) GAO STUDY AND REPORT.— 

15 (1) STUDY.—The Comptroller General of the 

16 United States shall carry out a study regarding— 

17 (A) the quality of credit ratings issued by 

18 nationally recognized statistical ratings organi19 zations, as that term is defined in section 3(a) 

20 of the Securities Exchange Act of 1934 (15 

21 U.S.C. 78c(a)), including during the 2008 eco22 nomic crisis; 

23 (B) the effect of competition on the quality 

24 of credit ratings and on the ability of smallVerDate Sep 11 2014 18:12 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4586.IS S4586

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1 and mid-size companies and financial institu2 tions to access the capital markets; and 

3 (C) the implementation of the amendment 

4 made by subsection (a). 

5 (2) REPORT.—Not later than 1 year after the 

6 date of enactment of this Act, the Comptroller Gen7 eral of the United States shall submit to Congress 

8 a report containing all findings and determinations 

9 made in carrying out the study required under para10 graph (1). 

Æ 


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