Moody's computer error shaped ratings: report

A coding error at Moody's Corp. boosted the investment ratings of a particular class of debt instrument and wasn't immediately corrected after it was uncovered, according to a published report.

The ratings agency mistakenly gave triple-A ratings to billions of dollars worth of debt products but didn't lower the ratings after the computer bug was discovered in early 2007, the Financial Times reported, citing Moody's internal documents.

Ratings agencies such as Moody's, Standard & Poor's and Fitch have come under fire during the credit storm after triple-A rated debt instruments that contained subprime mortgages and other risky debt imploded.

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- Posted: 2008-05-21 08:44:01

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