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S&P accused of weakening ratings model to win business in landmark Australian lawsuit

Reuters  |  SYDNEY 

By Tom WestbrookSYDNEY (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 U.S.-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 U.S. subprime mortgage crisis hit a decade ago.The class action suit, funded by Singapore-based ...

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First Published: Mon, March 12 2018. 13:30 IST