Moody's falls on risk of US lawsuit

Shares in credit rating agency Moody's slid 6 per cent yesterday as the prospect of a federal fraud lawsuit over its pre-crisis debt ratings overshadowed a 66 per cent rise in quarterly earnings and a strong 2013 outlook.

The US Department of Justice and several states were discussing suing Moody's for defrauding investors, people familiar with the matter told Reuters, but any such move will likely wait until the lawsuit against rival Standard & Poor's is tested in the courts.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1146449/moodys-falls-risk-us-lawsuit