Egan-Jones, the privately held credit rating agency, has fired a sharp rebuttal at the U.S. Securities and Exchange Commission, calling an SEC order 'incendiary' and claiming it has already damaged its business. The SEC's order questioned whether Egan-Jones could 'consistently produce credit ratings with integrity', which the agency says unfairly targets its entire authorization rather than just its application to expand into new debt classes. Egan-Jones asserts the language could imply its overall authorization is under review and subject to revocation, causing 'collateral harm' to its operations. The dispute centers on Egan-Jones' bid to rate asset-backed securities and sovereign debt, which the SEC linked to concerns about the firm's financial resources and access to non-public information. Egan-Jones maintains this was not the regulator's intent and has requested the SEC promptly correct the language to limit the damage.

Founded in 1995, Egan-Jones has grown into a significant player in the private credit market, rating over 3,000 deals last year and serving insurers' regulatory capital calculations.