Financial Times FT.com

Ratings agencies

Moody’s to check on accuracy

By Sam Jones and Gillian Tett in London

Published: July 2 2008 23:33 | Last updated: July 2 2008 23:33

Moody’s is moving to re-examine the accuracy of all its computer models and place them under a centralised monitoring system after it formally acknowledged earlier this week that a glitch had appeared in one such mathematical model used to rate complex products.

Moody’s will also introduce a standardised protocol for fixing computer errors in the future – rather than letting individual units deal with problems, as at present, officials say.

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