EU Reaches Draft Deal on Rules for Credit-Ratings Companies

Credit-ratings companies face curbs on when they can assess government debt and restrictions on their ownership under draft plans agreed on by European Union officials and legislators.

Lawmakers from the European Parliament and Cyprus, which holds the rotating presidency of the EU, also agreed to allow investors to sue ratings companies if they lose money because of their malpractice or gross negligence, according Stefaan De Rynck, a spokesman for EU Financial Services Chief Michel Barnier.

To contact the reporter on this story: Jim Brunsden in Brussels at jbrunsden@bloomberg.net

To contact the editor responsible for this story: Christopher Scinta at cscinta@bloomberg.net