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Ratings agencies

Ratings agencies slam guarantee proposals

By Joanna Chung and Saskia Scholtes in New York

Published: April 28 2008 20:27 | Last updated: April 28 2008 20:27

Guaranteeing the quality of information used to assign credit ratings on structured finance securities would be “overly burdensome and redundant”, several leading ratings agencies have told regulators.

The comments come as financial regulators are drawing up a new code of conduct for the industry, which is facing calls for tougher supervision after mortgage-linked securities awarded high credit ratings have suffered heavy losses.

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