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EU states in deal on supervising rating agencies

  European Union states reached a deal on Wednesday on introducing mandatory registration and direct supervision of credit rating agencies, a spokesman for the Czech EU presidency said.

The sector has been criticized as failing to warn investors about risks in subprime-related products.

Ambassadors for the 27 EU states voted in favor of the measure, authored by the bloc’s executive European Commission, that will affect companies such as Standard & Poor’s, Moody’s and Fitch Ratings.

“The EU ambassadors reached a preliminary deal on a measure to regulate credit rating agencies,” the spokesman said.

The European Parliament has joint say on the measure and is due to vote in committee this month followed by a full session in April. Formal endorsement from EU finance ministers will also be needed. (Reuters)