Morningstar, Inc.’s (MORN Quick QuoteMORN - Free Report) credit rating subsidiary, Morningstar Credit Ratings was recently granted approval to rate corporate debts (including the ones issued by financial institutions) by the Securities and Exchange Commission..

Morningstar Credit Ratings will now be a nationally recognized statistical rating organization (NRSRO). So far, the division has given ratings on mutual funds and structured finance. However, its parent company, Morningstar, Inc. has been giving corporate credit ratings since 2009 though they were non-NRSRO.

The latest approval has opened a new growth avenue for the company while making competition rife for existing players like Moody's Corporation (MCO Quick QuoteMCO - Free Report) , S&P Global, Inc. (SPGI Quick QuoteSPGI - Free Report) and Fitch. Morningstar Credit Ratings will now be expanding its analysts’ team to meet the requirements. Morningstar, Inc.’s corporate analyst team of 13 members will now become a part of the Credit Ratings division.

As the press release states "The expansion of our NRSRO registration to corporate issuers and financial institutions allows us to bring transparency and unique forward-looking perspectives to investors and issuers and provides a compelling alternative to the other NRSROs. Investors will also benefit from the ability to use our ratings to satisfy investment guidelines and determine risk-based capital charges on corporate debt securities."

MORNINGSTAR INC Price and Consensus

MORNINGSTAR INC Price and Consensus | MORNINGSTAR INC Quote

Investors interested in the space can consider LifeLock, Inc. , having a Zacks Rank #2 (Buy).

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