US SEC rating agency to complement New York pact

WASHINGTON, June 10 (Reuters) - The chairman of the U.S. Securities and Exchange Commission said on Tuesday that the SEC's forthcoming rule proposals for credit rating agencies will be independent of and complementary to a pact some agencies reached with the New York attorney general.

The SEC plans to propose on Wednesday new rules for credit rating agencies that will have a "significant emphasis" on disclosure, Christopher Cox said.

"The overarching purpose when it comes to disclosure is clarity. We want investors to be able to understand what they're looking at," Cox told reporters after an SEC roundtable meeting.

Under pressure from New York's top state prosecutor, credit rating agencies struck a pact with state Attorney General Andrew Cuomo last week to change the way they charge fees for reviewing mortgage-backed securities.

The accord was reached with Moody's Corp's (MCO.N) Moody's Investors Service, McGraw-Hill Co's (MHP.N) Standard & Poor's and Fimalac SA's (LBCP.PA) Fitch Ratings.

It is aimed at increasing the independence of ratings agencies, which have been criticized for helping fuel the U.S. subprime mortgage crisis by assigning high marks to risky securities that later tumbled in value.

Cox said the SEC's reform plan will be independent of Cuomo's efforts and will focus on the SEC's authority over credit rating agencies given to it by Congress.

The SEC gained additional oversight powers over credit raters through a 2006 law aimed at increasing competition in the industry. The SEC's oversight also covers record-keeping requirements and financial reporting standards.

The SEC's forthcoming rule proposals are expected to force credit rating agencies to disclose when they change their ratings and may require them to disclose information about a structured product's underlying assets.

The SEC has also been considering requiring the rating agencies to issue a report attached to each structured finance rating that would highlight risks associated with the product and differentiate it from corporate bonds.

Wall Street and the real estate industry oppose creating a separate rating scale for structured products, saying it would scare away some investors and would ultimately hurt the credit markets.

Cox said on Tuesday that "all concerns of that type are validly considered and taken into account."

But he said investors need to understand what they're putting their money into.

"We will have a significant emphasis on disclosure for that reason," he said. "To the extent the disclosure is accurate and understandable and complete, it should carry no further or hidden messages." (Reporting by Karey Wutkowski, editing by Gerald E. McCormick) (Additional reporting by Rachelle Younglai)