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Bill

SB 1674

Unrated Bonds

2025 Regular Session Introduced by Alexis Calatayud and 2 co-sponsors

Florida law now permits certain unrated bonds in investment portfolios by establishing alternative credit evaluation standards beyond traditional rating agencies.

Laid on Table, companion bill(s) passed, see CS/CS/HB 669 (Ch. 2025-174)
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Bill Summary · SB 1674

Legislative bill overview

SB 1674 addresses the treatment of unrated bonds in Florida's investment and financial regulations. The bill was substituted by its House companion (CS/CS/HB 669) and laid on table after that companion bill passed into law as Chapter 2025-174, making SB 1674 technically defunct but its provisions now law through the House version.

Why is this important

Unrated bonds—debt securities without credit ratings from major agencies—affect how public entities, pension funds, and financial institutions can invest. Clarifying rules around unrated bonds impacts investment flexibility, portfolio risk management, and access to capital markets for borrowers who cannot or choose not to obtain ratings, which can have cost implications for both investors and issuers.

Potential points of contention

  • Investment risk standards: Defining what makes unrated bonds eligible for public investment without ratings creates tension between expanding market access and protecting public funds from inadequately vetted securities
  • Administrative burden: Institutions may face increased due diligence requirements to evaluate unrated bonds independently rather than relying on agency ratings
  • Market access equity: Rules could either democratize bond markets by reducing rating agency gatekeeping or create loopholes that disadvantage smaller, less transparent issuers

Compiled from official sources — confirm details with the bill’s official record.

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