ICBA objects to FCC using Weiss Ratings for access to certain programs

ICBA told the Federal Communications Commission that Weiss Ratings is ill-suited for use as a gatekeeper for certain FCC programs.

Background: The FCC proposed that banks providing a letter of credit to carriers participating in certain FCC programs, such as its Rural Digital Opportunity Fund, must have a Weiss bank safety rating of B- or better.

ICBA View: In a comment letter to the FCC and in a joint letter with more than 70 state banking associations, ICBA said Weiss is ill-suited to the task of rating bank safety because:

  • Its ratings are not sufficiently rigorous or transparent.

  • Its impartiality is in question due to a number of anti-government, anti-bank, and pro-cryptocurrency messages on its website.

  • An unregulated cryptocurrency received an A- rating from Weiss while thousands of regulated financial institutions have a safety rating lower than B-.

Call to Action: ICBA said the FCC should defer to the federal banking agencies, which already examine banks for safety and soundness, and say said that any FDIC-insured bank should be permitted to issue letter of credit to carriers participating in Universal Service Fund High-Cost programs.

READ THE LETTERS