Moody's agrees to pay US $864m over low-risk ratings leading up to financial crisis

The world's second-largest credit ratings agency has agreed to pay nearly $864m to settle US government and state claims that it gave inflated assessments to risky mortgage investments in the years leading up to the financial crisis.

The deal was struck by New York-based Moody's with the US Justice Department and the attorneys general for 21 states and the District of Columbia on Friday.