LISBON, Portugal -- Portuguese authorities have opened a criminal inquiry into three international credit rating agencies following a complaint, the Attorney General's office said Monday.
The inquiry is based on a complaint filed last month by four Portuguese academics, an official with the Attorney General's office said on condition of anonymity, in keeping with departmental regulations.
The four economists claimed the agencies _ Moody's, Standard & Poor's and Fitch _ caused severe financial losses for Portugal and demanded to know whether they profited from the ratings.
They also complained that the agencies dominated the ratings market and want to know whether competition rules were broken.
The inquiry will determine whether there is evidence for charges to be brought. The official declined to provide further details because the investigation is confidential.
Are you kidding me? You get downgraded then you begin your investigation? Could the timing have anything to do with Greece, knowing you are next? While the incompetence and non-competitive nature of the agencies is hardly debatable, this move reeks of rating pressure.
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