RATING agency Moody&rsquo;s will enter the firing line today, when one of its former executives tells a congressional hearing that the company was giving inflated ratings to securities as early as this year. <br /><br />Eric Kolchinsky will also tell the US House Oversight and Government Reform Committee that Moody&rsquo;s puts revenues from its clients before the accuracy of its ratings. <br /><br />And Kolchinsky will say the firm&rsquo;s credit policy group is weak and short-staffed and its analysts are &ldquo;bullied&rdquo; by managers who override their decisions to generate revenue. <br /><br />The former executive &ndash; who said he was suspended for threatening to blow the whistle &ndash; claims he sent a 14-page memo to the Moody&rsquo;s chief compliance officer in 2009 about rating methods but felt that his concerns were not taken seriously.<br /><br />It is understood that the memo has been submitted to the House Oversight and Government Reform Committee.<br /><br />The claims against Moody&rsquo;s are sure to turn the spotlight on the other major rating agencies &ndash; Fitch and Standard &amp; Poor&rsquo;s &ndash; who are in regulators&rsquo; sights for fuelling the financial crisis by assigning artificially high ratings to mortgage-backed securities. <br /><br />Committee chair Edolphus Towns yesterday said &ldquo;little has changed&rdquo; in the &ldquo;fraudulent, careless, and troubling practices &hellip; that brought our nation to the brink of financial collapse&rdquo;, and warned he could recommend more regulation.<br /><br />Others giving evidence to the committee today include Floyd Abrams, a partner at New York law firm Cahill Gordon &amp; Reindel, who is representing S&amp;P against around 30 law suits accusing it of delivering misleading ratings. <br /><br />And Joe Dear, chief investment officer at the California Public Employees Retirement System &ndash; the giant US pension fund suing the agencies over $1bn of losses &ndash; will testify. <br /><br />Senator Alfonse D&rsquo;Amato, former head of the Senate Committee on Banking, will also take to the stand along with respected New York University economist Professor Lawrence White.<br /><br />Shares in Moody&rsquo;s plummeted by over eight per cent yesterday, as investors prepared for the potentially damaging hearing. <br /><br />&ldquo;Moody&rsquo;s is committed to upholding the highest standards of professional conduct and analytical integrity,&rdquo; a spokesman for the ratings agency said. <br />