S&P Says US Fraud Suit Is Retaliation For 2011 Downgrade

Law360, New York (September 03, 2013, 4:15 PM ET) -- Standard & Poor's Financial Services LLC on Tuesday said the U.S. government had targeted it in a lawsuit over faulty ratings of failed subprime mortgage-backed securities as retaliation for the ratings agency's 2011 downgrade of U.S. government debt.

In a response filed in federal district court in Los Angeles, S&P said that other ratings agencies made similar bad calls on the same mortgage-backed securities prior to the financial crisis and yet only the McGraw-Hill Companies Inc. unit was targeted with a fraud lawsuit from the federal...
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