The Securities and Exchange Commission rejected credit rating firm Egan-Jones Ratings Co.'s application to re-enter the market for grading government debt and asset-backed securities, the latest sign of regulatory pushback against the small but prolific agency.

Egan-Jones’ application contained material inaccuracies, the filing said, including certifications that were “years out of date” from what the SEC called qualified institutional buyers. The US regulator said it has to reject petitions if a firm doesn’t have adequate resources to consistently produce credit ratings with integrity and to comply with specified statutory standards.

The decision, dated August 12, 2026, underscores the SEC's strict oversight of credit rating agencies. Egan-Jones, known for its frequent filings and sometimes controversial ratings, must now reassess its strategy for expanding into these sectors.

This rejection follows a pattern of close scrutiny by regulators, emphasizing the importance of accurate and timely documentation for firms seeking to broaden their ratings business.