Six major credit rating agencies in the United States have been penalized over $49 million due to failures in maintaining official records.

This group includes prominent names such as Moody’s Investors Services, S&P Global Ratings, and Fitch Ratings, all of which reached settlements with the U.S. Securities and Exchange Commission (SEC).

Alongside these agencies, the list also includes HR Ratings de Mexico, AM Best Rating Services, and Demotech.

The SEC stated that all six agencies acknowledged serious shortcomings in their ability to manage and retain electronic communications. Notably, aside from AM Best and Demotech, each firm will need to work with a compliance consultant.

In light of past criticisms that credit rating agencies faced following the 2008 financial crisis—particularly regarding their failure to recognize the risks associated with complex financial instruments and the subprime mortgage sector—these agencies are working to restore their reputations.

According to the SEC, Moody’s and S&P will each pay $20 million, while Fitch has agreed to a settlement of $8 million. AM Best will contribute $1 million, HR Ratings de Mexico will pay $250,000, and Demotech’s penalty amounts to $100,000.

Sanjay Wadhwa, deputy director of the SEC’s enforcement division, emphasized the challenges posed by inadequate record-keeping, stating, “Failures to maintain and preserve required records can hinder the staff’s ability to ensure compliance with obligations and the Commission’s ability to enforce accountability, often at investors’ expense.”

Wadhwa also noted that the SEC will continue to recognize the efforts of firms that actively strive for compliance and assist with investigations.