Credit-Ratings Agency Regulations

It appears that the SEC is close to increasing the regulations on credit-ratings agencies. Traditionally, credit ratings for bond issues have followed the "issuer pays" model, that is, the bond issuer pays the ratings agency fee. This arrangement can lead to a conflict of interest as a credit-ratings agency that awards low ratings could lose business in the future. The new rules are designed  to "take additional steps to ensure that the firms’ interest in winning business doesn’t affect ratings analysis." Additionally, the new regulations require more disclosures to investors, never a bad outcome.