EC plan to stop ratings in crises

BLACKOUTS will be forced on credit ratings of weak sovereigns at crucial moments, if the European Commission (EC) gets its way with proposals to be unveiled next month.

The EC would not confirm the reports, based on a leaked document, as internal discussions are ongoing.

However, a source told City A.M. the plan is to temporarily prohibit the issuing of sovereign ratings if a government was in bailout negotiations.

A Moody’s spokesman said such a move would only serve to “undermine investor confidence, disrupt access to credit and increase volatility.”