Kroll Says Big Ratings Agencies Spreading Rumors

Did the three major ratings agencies engage in a whisper campaign against a smaller competitor? Kroll Bond Ratings Agency founder Jules Kroll was reported as “irate” over what he says is a “coordinated effort” by Moody’s, S&P and Fitch to spread rumors of an SEC investigation into a recent divisional acquisition. At the center of the issue is an Securities and Exchange Commission inquiry over the impact a private equity buyout might have on ratings quality amid potential increased profit margin pressure.

Kroll claims competitors spreading rumors of SEC evaluation of acquisition

At issue is a recent private equity investment from Wharf Street in Kroll, who purchased a 90% stake in...