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S&P settles case with US Justice Department by backing down

Credit rating agency had portrayed lawsuit as an act of "retaliation" for cutting US credit rating in 2011

As part of a US$1.37 billion settlement deal expected this week, S&P has agreed to acknowledge that it never found evidence supporting its accusations of retaliation, people briefed on the matter said.

New York

STANDARD & Poor's (S&P), the giant credit rating agency accused of inflating the sub-prime mortgage bubble, had long been convinced that a Justice Department lawsuit lacked merit. So convinced, in fact, that it portrayed the lawsuit as an act of "retaliation" for its