SEC Scrutiny of Egan-Jones Exposes Ratings Risk in Private Credit and Insurance Portfolios

Egan-Jones graded over 3,000 private credit investments in a single year and rated a large portion of Delaware Life's affiliated investments. Those ratings feed directly into insurers' regulatory capital calculations. The SEC's March 2026 order questions whether the firm has adequate resources to produce ratings with integrity, leaving institutions holding assets tied to those grades facing uncertainty about their capital treatment.