Michel Barnier, the European Union’s financial services commissioner, said credit ratings companies should have access to the same information. He was speaking at a press briefing in Brussels today. If a ratings agency uses information for one of its clients “the other agencies must have access to the same information,” he said.
Hungary’s industrial-output growth unexpectedly accelerated at the fastest pace in three years as carmakers raised production, boosting Prime Minister Viktor Orban’s bid to regain the country’s investment credit grade.
The U.S. Securities and Exchange Commission has issued a report cautioning credit rating agencies about deceptive ratings conduct and the importance of sufficient internal controls over the policies, procedures, and methodologies the firms use to determine credit ratings.
In the run-up, or slow walk, to the fiscal cliff, credit rating agencies warned that a failure to reach an agreement to avert the automatic, year-end spending cuts and tax increases would put the nation's sovereign credit rating at risk. Standard & Poor's had already downgraded the U.S. long-term debt rating to AA+ from AAA on Aug. 5, 2011, during the debate over the debt-ceiling.