Coface, one of the world’s biggest credit insurers, has called for tougher European regulation of the credit rating market, on the eve of setting up the UK’s newest credit ratings agency.  The company said the EU had not taken a tough enough line in legislation currently being drafted to prevent the kinds of problems that arose when agencies gave top ratings to packages of subprime debt.  “The main factor in the present financial crisis was the failure of the ratings agencies and the present regulation in Brussels will not prevent a repetition of the subprime crisis,” Jérôme Cazes, Coface’s chief executive, told the Financial Times.  Source: The Financial Times Limited;  2008-12-17

BIIA Newsletter November 2008 Issue