International regulator to form body on rating agencies managing

/INTERFAX-AFI, London, May 28, 2008/ - Offerings on creating international body on rating agencies managing, suggested by European regulators this month, get more and more support on the background of credit crisis, Financial Times informed. Thus, this idea was supported by the head of technical committee of International Organization Securities Commission (IOSCO) Michel Prada. According to Prada, IOSCO plans to publish their recommendations to rating agencies. "I personally support this idea, - M. Prada declared in the interview. - I suppose moods have chanced. When I offered such conception several years ago, nobody supported me. Now, we are on the way to the same approach, which was applied to auditors". After scandals with Enron and WorldCom's statements, which showed necessity in forming global structure of International Business Monitoring, national regulators in audit sphere joined and worked out international audit standards. International "Behavior Code" for rating agencies was published by IOSCO in December, 2004 for the first time. However, calls for increasing control over agencies` activity were conditioned by growing impotence of analysts` pinion for financial regulators and their role in estimating difficult debt liabilities and mortgage documents. IOSCO will provide their recommendations for improvement of behavior code on the current week, however world regulator suggest that decision on organization creating will take more serious actions. In offerings, made by Committee of European Security Regulators (CESR), there is an appeal to form international body, determining standards for rating agencies as soon as possible. CESR intends to act itself in case world regulators didn't make quick support. Rating agency Standard & Poor's informed that it has already taken definite measures for creating transparency in process of ratings assumption, which corresponds with aims, made by CESR. Moody's also announced on supporting CESR`s offer. [2008-05-29]