EU approves tight rules for credit rating agency

STRASBOURG/ISTANBUL

Turkey has part ways with S&P in evaluation of Treasury bond issuances.

The European Parliament yesterday voted through tougher transparency standards for credit rating agencies that many blame for stoking risk and deepening the eurozone debt crisis.

Under the new regulations, agencies such as Standard & Poor’s, Moody’s and Fitch will have to be much more open in their deliberations and could face legal proceedings if found at fault in their work, Agence France-Presse reported yesterday.

Turkey is also facing disputes with rating agencies and recently broke from receiving full rating services, including that of Treasury bond issuances, with Standard & Poor’s. Commenting on the decision yesterday, Economy Minister Zafer Çağlayan said this was not meant to teach the agency a lesson. “However, hopefully, this will knock some sense [into them],” he said.