EC may curb powers of credit rating agencies

MEASURES to curb the powers of credit rating agencies, including making them liable for mistakes, are being floated by the European Commission.

Internal Market Commissioner Michel Barnier, on a one-day visit to Dublin, told the Oireachtas Joint Committee on European Affairs that he was ready to tackle conflicts of interest and create greater competition in the ratings business.

The move comes as the Government and EU policymakers hope none of the big three ratings agencies downgrade Ireland’s credit rating, as they did to Greece earlier this year, contributing to the Greeks needing a bailout.