Spitzer Subpoenas Moodys On Re Ratings

Moody's Corp. said it has received two subpoenas from New York Attorney General Eliot Spitzer, one of which seeks information concerning the rating of reinsurance companies.

In a 10-Q filing with the U.S. Securities and Exchange Commission, the New York-based rating service said it received a subpoena from Mr. Spitzer's office on July 13.

Moody's said it was asked for information and documents on its ratings of the financial strength and subordinated debt of reinsurance companies. This includes ratings that were unsolicited, in which the debt issuer did not participate in the rating process.

Moody's said the attorney general is seeking information going back to Jan. 1, 1997.

The firm also revealed that it received an earlier subpoena, going back to May 11, for documents and information regarding securities offerings the firm rated or sought to rate that were backed by jumbo mortgages from prime borrowers as well as credit enhancement evaluations.

Moody's said the request covered the period from June 30, 2000 to June 20, 2003. That subpoena, Moody's said, also seeks documents and information related to the firm's credit policies and procedures since Jan. 1, 1999.

Moody's said it is responding to the attorney general's requests and will cooperate with the inquiry.

During an analyst's conference call, Moody's chairman, chief executive officer and president, Raymond W. McDaniel Jr., would not comment further on the subpoenas but appeared to indicate, in reaction to one question, that the issue is specific to Moody's.

Representatives from other rating services–A.M. Best, Standard & Poor's and Fitch Ratings–said they have not received subpoenas.

Callout:

A.M. Best, Standard & Poor's and Fitch Ratings did not receive a similar order from the N.Y. attorney general.