Credit rating agency’s refusal to attend hearings queried
Hampton Finer, deputy superintendent of insurance in the New York Insurance Department says regulators will this week discus dropping Moody's from a list of acceptable rating organisations, Reuters reports.
He said concerns arose after the credit-rating agency turned down an invitation to attend a regulatory hearing on Thursday, where it was to be questioned about its ratings process.
"If we don't feel like we can get answers to our questions, the question is if we should put them on our ARO (acceptable rating organisations) list," said Finer. "We are a little stunned," that Moody's refused to attend the hearing, he said. "This is not going to be like a congressional hearing. No one is out to embarrass them."
Moody’s did not respond
National regulators’ meeting
Insurance regulators from across the United States will gather this week in National Harbor, Maryland, at a National Association of Insurance Commissioners (NAIC meeting to discuss a range of issues, including concerns over the current ratings system.
Other firms approved by the NAIC to rate insurer-held securities -- Fitch, S&P and DBRS Limited -- have agreed to answer questions at the hearing on September 24, according to information on the NAIC's website.
