U.S. SEC to propose new rating agency rules June 11

WASHINGTON, June 4 (Reuters) - The U.S. Securities and Exchange Commission said on Wednesday that it would hold an open meeting on June 11 to propose new rules on credit rating agencies.

The SEC, which is responsible for ensuring that credit ratings agencies make adequate disclosures, is considering whether additional industry regulations are needed.

Rating agencies such as Moody's Corp (MCO.N), Standard & Poor's, owned by McGraw-Hill Cos (MHP.N), and Fimalac SA's (LBCP.PA) Fitch unit have been criticized for failing to properly analyze securities backed by mortgages before assigning top ratings.

Critics have said the rating agencies sometimes assigned too-high ratings to securities backed by poor-quality mortgages.

The SEC has spent months examining the credit rating industry and plans to propose new rules for them in June, SEC Chairman Christopher Cox has said.

Last month, Cox told a U.S. Senate hearing that the agency is examining public disclosures by credit raters on structured finance products such as mortgage-backed securities, and how the rating agencies managed conflicts of interest.

New regulations could include requiring better disclosure of past ratings, limiting conflicts of interest and requiring rating agencies to differentiate between corporate bonds and more complex structured finance products, he said.

Last year the SEC gained additional oversight powers over the credit raters through a 2006 law aimed at increasing competition in the industry. (Reporting by Karey Wutkowski; editing by Carol Bishopric)