Ratings agency shares plummet on landmark AAA court case

Shares in Standard & Poor's parent group McGraw-Hill have slumped after an Australian court ruled S&P's AAA ratings misled investors during the financial crisis.

McGraw Hill's share price plummeted by 7.1% to $52.24 by close on Wall Street yesterday after an Australian judge ruled that Standard & Poor's misled investors by awarding its highest credit grade to securities which fell in value amid the global financial crisis. Concerned investors also sold competitor Moody's Investor Services, its shares falling 4.4% to $46.60 by the close. According to Federal Court Justice Jayne Jagot, S&P was "misleading and deceptive" in its rating of two structured debt issues in 2006, Bloomberg reported. Twelve Australian councils said they lost over 90% ...