SEC Considers Suit Against S&P Over CDO Rating

Law360, New York (September 26, 2011, 3:24 PM EDT) -- The McGraw-Hill Cos. Inc. revealed Monday that Standard & Poor's Rating Services, an arm of the soon-to-be-split company, might face civil claims from securities regulators over its rating of a 2007 collateralized debt obligation.

In a regulatory filing Monday, McGraw-Hill said the U.S. Securities and Exchange Commission had fired off a Wells notice to the company on Thursday.

The notice addresses Delphinus CDO 2007-1, a 2007 security rated by S&P.

S&P has been named in a host of lawsuits, but has mostly escaped liability for its...
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