Posted by: youngragingbull | February 12, 2013

McGraw-Hill says ratings lawsuit without merit

McGraw-Hill Cos. said in a statement Tuesday it believes the lawsuit filed last week by the Department of Justice against its ratings unit Standard and Poor’s Ratings Agency is without factual or legal merit and plans a very strong defense against it.

The firm went onto say S&P has a strong record of defending these types of cases, with 41 cases either dismissed or withdrawn.

The lawsuit by the government does not look at the central fact that S&P made the ratings on collateralized-debt obligations in good faith, McGraw-Hill said. The firm said the Department of Justice cherry-picked emails from 20 million emails and documents and that they display a culture of vigorous debate but not any wrongdoing.

The government’s claims that S&P deliberately kept ratings high when they should have been lower, is simply not true, said the firm in a statement.

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