SEC Probes Three Credit-Rating Giants Over Errors

Law360, New York (May 28, 2008, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission is bearing down on the largest rating firms – Moody's Corp., Standard & Poor's Corp. and Fitch Ratings Ltd. – prompted by reports that a computer error at Moody's had inflated the ratings of some securities.

The SEC faxed letters Friday to the three agencies, asking how they identify and correct mistakes in rating structured finance products.

SEC spokesman John Nester reportedly said the probe is part of a larger review of rating agencies' policies and practices launched by the...
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