S&P reaches US$1.38b settlement with US government, states

[NEW YORK] McGraw Hill Financial Inc and its Standard & Poor Ratings Services unit have reached a US$1.38 billion settlement with the US government and several states over ratings of mortgage-backed securities that went sour in the runup to the 2008 financial crisis.

McGraw Hill said it would pay US$687.5 million to the US Department of Justice and US$687.5 million to 19 states and the District of Columbia.

The settlement contains no findings of violations of law by McGraw Hill or its ratings unit, the company said.

REUTERS