McGraw Hill, the parent company of Standard & Poor’s ratings services, said on Wednesday that it received notice from the Securities and Exchange Commission that it is under investigation for its rating of mortgage-backed securities in 2011.
McGraw Hill received the so-called Wells notice on Tuesday for alleged “violations of federal securities laws,” the company said in a release.
“The Wells Notice is neither a formal allegation nor a finding of wrongdoing,” according to the release. “S&P has been cooperating with the Commission in this matter and intends to continue to do so.”
The SEC has reportedly been examining McGraw Hill since last year, according to The New York Times. The investigation centers on six mortgage-backed securities that S&P graded in 2011.