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PUBLIC LAW 111–203—JULY 21, 2010 124 STAT. 1887

Urban Affairs on September 22, 1988, as enacted into law by
section 555 of Public Law 100–461, (22 U.S.C. 286hh(a)(6)), is
amended by striking ‘‘credit rating’’ and inserting ‘‘credit-worthi-
ness’’.
(g) EFFECTIVE DATE.—The amendments made by this section 12 USC 24a note.
shall take effect 2 years after the date of enactment of this Act.
(h) STUDY AND REPORT.—
(1) IN GENERAL.—Commission shall undertake a study on
the feasability and desirability of—
(A) standardizing credit ratings terminology, so that
all credit rating agencies issue credit ratings using identical
terms;
(B) standardizing the market stress conditions under
which ratings are evaluated;
(C) requiring a quantitative correspondence between
credit ratings and a range of default probabilities and
loss expectations under standardized conditions of economic
stress; and
(D) standardizing credit rating terminology across
asset classes, so that named ratings correspond to a
standard range of default probabilities and expected losses
independent of asset class and issuing entity.
(2) REPORT.—Not later than 1 year after the date of enact-
ment of this Act, the Commission shall submit to Congress
a report containing the findings of the study under paragraph
(1) and the recommendations, if any, of the Commission with
respect to the study.

SEC. 939A. REVIEW OF RELIANCE ON RATINGS. Regulations.
15 USC 78o–7
(a) AGENCY REVIEW.—Not later than 1 year after the date note.
of the enactment of this subtitle, each Federal agency shall, to Deadline.
the extent applicable, review—
(1) any regulation issued by such agency that requires
the use of an assessment of the credit-worthiness of a security
or money market instrument; and
(2) any references to or requirements in such regulations
regarding credit ratings.
(b) MODIFICATIONS REQUIRED.—Each such agency shall modify
any such regulations identified by the review conducted under
subsection (a) to remove any reference to or requirement of reliance
on credit ratings and to substitute in such regulations such standard
of credit-worthiness as each respective agency shall determine as
appropriate for such regulations. In making such determination, Standards.
such agencies shall seek to establish, to the extent feasible, uniform
standards of credit-worthiness for use by each such agency, taking
into account the entities regulated by each such agency and the
purposes for which such entities would rely on such standards
of credit-worthiness.
(c) REPORT.—Upon conclusion of the review required under
subsection (a), each Federal agency shall transmit a report to Con-
gress containing a description of any modification of any regulation
such agency made pursuant to subsection (b).

SEC. 939B. ELIMINATION OF EXEMPTION FROM FAIR DISCLOSURE 15 USC 78m
RULE. note.

LAWS Not later than 90 days after the date of enactment of this Deadline. subtitle, the Securities Exchange Commission shall revise Regula- tion FD (17 C.F.R. 243.100) to remove from such regulation thePUBLIC with on anorris VerDate Nov 24 2008 03:41 Aug 28, 2010 Jkt 089139 PO 00203 Frm 00513 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203