Moody's to discipline staff over ratings

Business News IN BRIEF

*Moody's has started disciplinary proceedings against some employees for considering inappropriate issues in app-roving triple- A ratings for complicated debt products called constant proportion debt obligations (CPDOs). The ratings agency, already under fire over the rating of US subprime-related debt products, launched an inquiry in May after journalists uncovered a coding error in a computer model that caused CPDOs to be rated four notches higher than they should have been under the model. The error involved 11 CPDOs with a combined value of less than $1bn.

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