EC hits out at credit ratings agencies

The European Commission has today called for tighter control of credit ratings agencies.

Agencies such as Standard and Poor's, Moody's and Fitch have been widely criticised regarding their role in the debt crisis that rocked the euro.

A number of Eurozone countries including Ireland have been hit by severe negative credit downgrades which has made borrowing more expensive.

New proposals could see agencies required to warn Governments days in advance of their credit score to allow the country point out any errors in the report.

Another proposal could see investors allowed to sue agencies if they issued incorrect ratings.