Europe attacks 'mad' credit ratings agencies

The downgrading of Portugal's debt to 'junk' status by Moody's earlier this week has led to renewed criticism, this time from the European Commission (EC), of the role and behaviour of credit ratings agencies.

The Commission said the timing of the downgrade was "questionable" and raised the issue of the "appropriateness of behaviour" of agencies in general. Earlier, Greek Foreign Minister Stavros Lambrinidis said the agencies' actions in the debt crisis had been "madness" and tantamount to "self-fulfilling prophecy". On Tuesday, Moody's - one of three main ratings agencies alongside Standard & Poor's and Fitch - downgraded Portugal's debt to 'junk' status, citing worries that the country may need a second bail-out. "The timing of Moody's decision is not only questionable, but also based ...