Credit Rating Giants Face Possible EU Enforcement Action

Law360, New York (December 2, 2013, 1:27 PM EST) -- The European Union said Monday it may take enforcement action against Standard & Poor’s, Moody’s Investors Service and Fitch Ratings after finding alleged deficiencies in how the firms rate sovereign debt.

The European Securities and Markets Authority, an independent EU watchdog, said in a report that it had ordered the three companies to address potential conflicts of interest and other issues related to their sovereign ratings. The report was issued “without prejudice to the possibility of further investigations which could lead to supervisory or enforcement actions,”...
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