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S&P sued in Aus for A$190 mn for 'weakening ratings model to win business'

In the 10 years since the global financial crisis, S&P has settled lawsuits in the US over its ratings of CDO

Reuters 

Ratings agency Standard and Poor's weakened its risk assessment criteria to win business and turn out high ratings on opaque debt products that started to unwind during the global financial crisis, an Australian court heard on Monday. The US-based ratings agency is being sued for at least A$190 million ($150 million) by two local governments and two pension funds in Australia, which lost money on synthetic collateralised debt obligations (SCDOs) when the US subprime mortgage crisis hit a decade ago. The class action suit, funded by Singapore-based Litigation Capital ...

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First Published: Mon, March 12 2018. 14:12 IST
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