S&P gives Moody’s an investment grade rating; sounds concern on financial legislation

S&P gives Moody’s an investment grade rating

CHICAGO — The Standard & Poor’s ratings agency assigned Moody’s Corp. an investment-grade “BBB+” credit rating Tuesday.

In a statement, S&P analyst Andy Liu said the rating reflects potential risks Moody’s faces because of the recently passed financial reform legislation, which could lower the bar for investors to file securities fraud cases against ratings agencies.

The agencies have been the target of some blame for the financial crisis because they gave top ratings to mortgage securities that later lost value.

S&P added, however, that Moody’s has a “well-known brand” and a “relatively conservative financial policy with regard to share repurchases, dividends and acquisitions.”

Moody’s shares were up 23 cents to $23.84 in afternoon trading.