LONDON, June 3 Europe's markets watchdog has
issued a notice censuring ratings agency Standard & Poor's for
internal control failings related to it erroneously announcing
in 2011 it was downgrading France's debt.
In a statement on Tuesday, the European Securities and
Markets Authority (ESMA) said the incident, involving an email
sent out to subscribers stating "France (Republic of)
(Unsolicited Ratings): DOWNGRADE", when S&P's rating of France
had not been downgraded, breached regulations.
"ESMA found that this incident was the result of a failure
by S&P to meet certain organisational requirements set out in
the CRA Regulation, relating to sound internal control
mechanisms, effective control and safeguard arrangements for
information processing systems and decision-making procedures
and organisational structures," ESMA said.
(Reporting by Chris Vellacott. Editing by Matt Scuffham)