SEC Decides Not To Hit Moody's With Ratings Action

Law360, New York (August 31, 2010, 7:18 PM EDT) -- Because of a jurisdictional uncertainty, the U.S. Securities and Exchange Commission will not pursue an enforcement action against credit rating agency Moody's Corp. over allegedly boosted ratings, the agency said Tuesday.

A Moody's analyst discovered in 2007 that credit ratings for certain so-called constant proportion debt obligation notes, or CPDOs, had been improperly boosted by a computer coding error, according to a report issued by the regulator.

But at a meeting in Europe shortly thereafter, a rating committee voted against revising the pumped-up ratings in part...
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