Morningstar Pays $1.15 Million to Settle SEC Credit-Rating Case

A former credit-ratings unit of Morningstar Inc. agreed to pay $1.15 million to settle a US regulator’s allegations that it allowed analysts to make undisclosed adjustments that resulted in higher ratings of some mortgage-backed securities.

A federal judge in Manhattan on Tuesday approved the settlement between Morningstar Credit Ratings LLC, which is no longer operational, and the US Securities and Exchange Commission. Morningstar agreed to the payment without admitting or denying the SEC’s allegations, according to court records.

The SEC sued the former Morningstar unit in February 2021 for allegedly failing to transparently explain how it rated about …