5/27/2008

The SEC has sent letters to the three main credit-rating agencies, Moody's, Fitch and Standard & Poor's, to request information about their methodology. "We asked them to explain the policies and procedures used to detect errors in ratings of structured finance products and to tell us about any errors that they found in structured finance products over the last four years, including steps that they followed to correct the problem," said Erik Sirri, director of the regulator's trading and markets division. The move comes after reports of a computer glitch at Moody's that resulted in inflated ratings on some products.

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