1062 
‘‘(2) FORMAT.—The Commission shall prescribe 
a form for use under paragraph (1) that— 
‘‘(A) is designed in a user-friendly and 
helpful manner for investors to understand the 
information contained in the report; 
‘‘(B) requires the nationally recognized 
statistical rating organization to provide the 
content, as required by paragraph (3), in a 
manner that is directly comparable across secu-
rities; and 
‘‘(C) the nationally recognized statistical 
rating organization certifies the information on 
the form as true and accurate. 
‘‘(3) CONTENT.—The Commission shall pre-
scribe a form that requires a nationally recognized 
statistical rating organization to disclose — 
‘‘(A) the main assumptions included in 
constructing procedures and methodologies, in-
cluding qualitative methodologies and quan-
titative inputs and assumptions about the cor-
relation of defaults across underlying assets 
used in rating certain structured products; 
‘‘(B) the potential shortcomings of the 
credit ratings, and the types of risks not meas-
ured in the credit ratings that the nationally 
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recognized statistical rating organization is not 
commenting on, such as liquidity, market, and 
other risks; 
‘‘(C) information on the certainty of the 
rating, including information on the reliability, 
accuracy, and quality of the data relied on in 
determining the ultimate credit rating and a 
statement on the extent to which key data in-
puts for the credit rating were reliable or lim-
ited, including any limits on the reach of histor-
ical data, limits in accessibility to certain docu-
ments or other forms of information that would 
have better informed the credit rating, and the 
completeness of certain information considered; 
‘‘(D) whether and to what extent third 
party due diligence services have been utilized, 
and a description of the information that such 
third party reviewed in conducting due diligence 
services; 
‘‘(E) a description of relevant data about 
any obligor, issuer, security, or money market 
instrument that was used and relied on for the 
purpose of determining the credit rating; 
‘‘(F) a statement containing an overall as-
sessment of the quality of information available 
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and considered in producing a credit rating for 
a security in relation to the quality of informa-
tion available to the nationally recognized sta-
tistical rating organization in rating similar ob-
ligors, securities, or money market instruments; 
‘‘(G) an explanation or measure of the po-
tential volatility for the credit rating, including 
any factors that might lead to a change in the 
credit rating, and the extent of the change that 
might be anticipated under different conditions; 
‘‘(H) information on the content of the 
credit rating, including— 
‘‘(i) the expected default probability; 
and 
‘‘(ii) the loss given default; 
‘‘(I) information on the sensitivity of the 
rating to assumptions made by the nationally 
recognized statistical rating organization, in-
cluding— 
‘‘(i) 5 assumptions made in the rat-
ings process that, without accounting for 
any other factor, would have the greatest 
impact on a rating if such assumptions 
were proven false or inaccurate; and 
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‘‘(ii) an analysis, using concrete exam-
ples, on how each of the 5 assumptions 
identified under clause (i) impacts a rat-
ing. 
‘‘(J) where applicable, how the nationally 
recognized statistical rating organization used 
servicer or remittance reports, and with what 
frequency, to conduct surveillance of the credit 
rating; and 
‘‘(K) such additional information as may 
be required by the Commission. 
‘‘(4) DUE DILIGENCE SERVICES.— 
‘‘(A) CERTIFICATION REQUIRED.—In any 
case in which third-party due diligence services 
are employed by a nationally recognized statis-
tical rating organization or an issuer, under-
writer, or sponsor in connection with the 
issuance of a credit rating, the firm providing 
the due diligence services shall provide to the 
nationally recognized statistical rating organiza-
tion written certification of such due diligence, 
which shall be subject to review by the Commis-
sion, and the issuer, underwriter, or sponsor 
shall provide any reports issued by the provider 
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of such due diligence services to the nationally 
recognized statistical rating organization. 
‘‘(B) FORMAT AND CONTENT.—The Com-
mission shall establish the appropriate format 
and content for written certifications required 
under subparagraph (A) to ensure that pro-
viders of due diligence services have conducted 
a thorough review of data, documentation, and 
other relevant information necessary for the na-
tionally recognized statistical rating organiza-
tion to provide a reliable rating. 
‘‘(C) DISCLOSURE
OF
CERTIFICATION.— 
The Commission shall adopt rules requiring a 
nationally recognized statistical rating organiza-
tion to disclose to persons who have access to 
the credit ratings of the nationally recognized 
statistical rating organization regardless of 
whether they are made readily accessible for 
free or a reasonable fee the certification de-
scribed in subparagraph (A) with the publica-
tion of the applicable credit rating in a manner 
that may permit the persons to determine the 
adequacy and level of due diligence services pro-
vided by the third party. 
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‘‘(t) PROHIBITED ACTIVITIES.—Beginning 180 days 
from the date of enactment of the Accountability, Reli-
ability, and Transparency in Rating Agencies Act, it shall 
be unlawful for a nationally recognized statistical rating 
organization, or an affiliate of a nationally recognized sta-
tistical rating organization, or any person associated with 
a nationally recognized statistical rating organization, that 
provides a credit rating for an issuer, underwriter, or 
placement agent of a security to provide any non-rating 
service, including— 
‘‘(1) risk management advisory services; 
‘‘(2) advice or consultation relating to any 
merger, sales, or disposition of assets of the issuer; 
‘‘(3) ancillary assistance, advice, or consulting 
services unrelated to any specific credit rating 
issuance; and 
‘‘(4) such further activities or services as the 
Commission may determine as necessary or appro-
priate in the public interest or for the protection of 
investors.’’. 
SEC. 6003. STANDARDS FOR PRIVATE ACTIONS. 
(a) IN GENERAL.—Section 21D(b)(2) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78u-4(b)(2)) is 
amended by inserting before the period at the end of the 
following: ‘‘, and in the case of an action brought under 
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