Standard & Poor’s says it will appeal against CPDO ruling

Wednesday, November 07, 2012

Standard & Poor’s has said that it will appeal against an Australian federal court judgment earlier this week over its AAA rating on CPDOs issued in 2006

TAGS: Law suits

Comment by: Anonymous. Posted 11 years ago [2012-11-13 05:29:28]

Australia is one of the "friendliest" jurisdictions as S&P cannot hide behind the argument that it is only an "opinion", under Australian law they need a "reasonable basis" for the opinion. Since one of the arguments is that they used or were influenced by ABN AMRO's assumptions then this is reasonably damning as using the assumptions that make the deal work for the arranger is not a reasonable basis

Comment by: Anonymous. Posted 11 years ago [2012-11-07 10:45:29]

I see plenty of information in this ruling about S&P’s incompetence. What I can’t find is an explanation of why S&P has a duty of care to investors. Am I missing some nuance of Australian law?

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