S&P’s Rating of AGC Serves as a Reminder of Continuing Disclosure Obligations

If your governmental entity or 501(c)(3) organization has engaged in a public offering of its debt obligations in the last 15 years, such obligated person has been responsible for continuing disclosure.

Rule 15c2-12 requires that obligated persons enter into an agreement to provide continuing disclosure in order for an underwriter to sell the bonds to the public. That disclosure takes the form of (1) annual financial information and (2) material event notices. An obligated person must file notice of a material event, such as a ratings change, within 10 days on the Municipal Securities Rulemaking Board’s EMMA platform.1

On January 13, 2017, Assured Guaranty caused S&P to rate 312 bond issues that Assured Guaranty insured. Assured Guaranty also requested that Moody’s Investor Service, Inc. withdraw its ratings based on Assured Guaranty’s financial strength.

You can see if your bonds have been affected by these developments by clicking on this link.

If you have any questions, please contact Ramiro M. Carbonell at 610.478.2275, Peter T. Edelman at 610.478.2168 or Brian P. Koscelansky at 570.969.5364.