HindustanTimes Mon,24 Nov 2014

Ratings row: S&P boss out

Reuters  Bangalore/New York, August 24, 2011
First Published: 01:24 IST(24/8/2011) | Last Updated: 02:16 IST(24/8/2011)

Standard & Poor's said its president is stepping down, capping two weeks of controversy following the rating agency's downgrade of US government debt on August 5 that sparked a row with the treasury.


S&P's parent McGraw-Hill Companies Inc, said on Tuesday Deven Sharma, who has served as S&P president since 2007, will be succeeded on September 12 by Citibank chief operating officer Douglas Peterson.

Sharma, 55, would work on a strategic portfolio review for the group until leaving at year-end, McGraw-Hill said in a statement.

The one-notch downgrade of US government debt from AAA, which has not been matched by other major rating agencies, led to the biggest sell-off in global stock markets in three years and was criticised by treasury officials and the administration over some of the methodology used by S&P.

The US justice department is also investigating the ratings agency over its actions in assigning high ratings to complex mortgage securities leading up to the 2008-2009 financial crisis.

The Financial Times, which first reported Sharma's resignation, quoted sources as saying his departure was unrelated to the downgrade.

more from Business

Rupee gains 8 paise against dollar in early trade

The rupee, on Monday, strengthened by four paise to 61.68 against the dollar in early trade following increased selling of the US currency by exporters and banks amidst sustained foreign capital inflows.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved