Exclusive: Moody's to pay over $850 million for pre-crisis ratings - source | Reuters

 Exclusive: Moodys to pay over 0 million for pre-crisis ratings - source
| Reuters

By Karen Freifeld

NEW YORK Moody's Corp (MCO.N) has agreed to pay over $850 million to settle with U.S. federal and state authorities over its ratings of risky mortgage securities in the run-up to the 2008 financial crisis, one person familiar with the matter said on Friday.The credit rating firm reached the deal with the Department of Justice and some 20 states, said the person, who did not want to be identified because the agreement was not yet public.

The agreement comes two years after S&P Global's (SPGI.N) Standard & Poor's entered into a $1.375 billion accord with the Justice Department, 19 states and the District of Columbia over similar claims. Standard and Poor's is the world's largest ratings firm, followed by Moody's.

(Reporting By Karen Freifeld; Editing by Bernard Orr)

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Updated Date: Jan 14, 2017 06:00:06 IST