EU Aims To Reduce Rating Agencies' Influence

Law360, New York (November 15, 2011, 2:38 PM EST) -- The European Commission on Tuesday set out new regulations that would put greater restrictions on credit rating agencies, require companies to rotate the rating agencies they use every few years and institute a restriction on mergers among rating agencies.

But the proposal, aimed at both limiting the importance of credit ratings and diversifying the industry, stopped short of suspending ratings for sovereign debt, with the EC stating that it was an idea that “merits further consideration.”

The proposal comes as European countries, including Italy, Greece, Spain...
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