Standard & Poor’s is to quit Australia’s retail market following a decision last week by ASIC, the nation’s securities regulator, to strengthen oversight of credit rating agencies by making them more accountable for the advice they provide. From January 2010, new licencing rules will also make the agencies more vulnerable to legal action if their ratings are used by companies, including banks, to raise funds from retail investors. The withdrawal of S&P, the market leader in Australia, may hamper domestic companies looking to sell bonds and other debt products.

This entry was posted by Gwen Robinson on Thursday, November 19th, 2009 at 4:38 and is filed under Capital markets. Tagged with Asic, s&p. Edit this entry.