Realpoint Approved by NAIC as a rating agency

Sorry no link to Bloomy article, but this should be another big win in the AA and up space. Insurers have to set aside significantly more money once the middle rating drops below AA.

Sept. 23 (Bloomberg) -- State insurance commissioners, seeking an alternative to rating firms Moody’s Investors Service and Standard & Poor’s, approved Realpoint LLC to evaluate commercial mortgage-backed securities in companies’ portfolios.

The ruling by the National Association of Insurance Commissioners means state regulators can rely on Realpoint in determining how much capital must be held by insurers, Scott Holeman, spokesman for the group, said today. Realpoint provides analysis to bond buyers through subscription, while S&P and Moody’s are paid by companies that issue securities.