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NEW YORK, June 25 (Reuters) - New financial regulations for credit rating companies in the U.S. financial reform bill will enhance transparency in the market but may trigger disruptions in credit markets, Moody’s Investors Service said on Friday.
U.S. lawmakers hammered out a historic overhaul of financial regulations that may crimp the banking industry’s profits and subject it to tougher oversight and restrictions. For details, click [ID:nN25206239]
“Moody’s supports the many measures in the financial regulatory reform bill that enhance the transparency and accountability of the credit ratings process and is committed to implementing them in the most effective way possible,” Moody’s said in an e-mail statement to Reuters.
“At the same time, we remain concerned that certain provisions of the bill could have unintended consequences or trigger disruptions in the credit market,” the statement said.
Reporting by Walden Siew; Editing by Andrew Hay