EU slams US credit rating 'oligopoly'

Policymakers say US dominance of main credit agencies has resulted in unfair downgrades of EU countries.

    While the US finds itself in danger of a credit ratings downgrade due to a national debt crisis, a number of European countries have seen their status fall even further.

    Standard & Poor's, Moody's and Fitch - the world's three main credit rating agencies, which are all US-based - have been criticised by European policymakers who say they have been too quick to downgrade EU states during the eurozone's debt crisis.

    Rainer Bruederle, the head of German Chancellor Angela Merkel's coalition partners in parliament, puts forward a proposal on Friday to launch a privately funded, independent European agency, to break the dominance of the US agencies, according to Handelsblatt, a German newspaper.

    "Trust in the statements of the opinion-oligopoly of the three largest US agencies is one of the reasons that risks in financial markets became known too late," the business daily quoted Bruederle as saying.

    Al Jazeera's Nadim Baba reports.

    SOURCE: Al Jazeera


    YOU MIGHT ALSO LIKE

    Survivor stories from Super Typhoon Haiyan

    Survivor stories from Super Typhoon Haiyan

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    We Are Still Here: A Story from Native Alaska

    We Are Still Here: A Story from Native Alaska

    From Qatar to Alaska, a personal journey exploring what it means to belong when your culture is endangered.