S&P Rips EU Proposal To Curb Ratings Agencies' Clout

Law360, New York (January 31, 2012, 4:27 PM EST) -- A European Commission proposal to curtail the influence of credit ratings agencies could make global financial markets less transparent and aggravate Europe’s looming debt crisis, Standard & Poor's said Tuesday.

The EC proposed regulations Nov. 15 aimed at limiting the importance of credit ratings and diversifying the industry, which has come under fire for downgrading the debt of struggling European countries and further roiling markets. The rules would require companies to rotate the ratings agencies they use every few years and increase regulators’ involvement in ratings,...
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