The US Department of Justice (DOJ) has warned S&P Global Ratings that it should “carefully consider” how proposed changes to the way it assesses the creditworthiness of bonds owned by insurance companies could harm competition, according to reports from Bloomberg.
In a recent letter, the DOJ’s antitrust division said that a methodology change put forward by S&P “could raise significant concerns” by unfairly inhibiting competitors.
The changes proposed by S&P would place more weight on the bonds within a firm’s and rank bonds rated exclusively by its competitors as less creditworthy.
