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S&P to pay $1.5 billion fine

Beyond settling with the Justice Department, S&P also reached a $125 million settlement with the California Public Employees Retirement System.

By Matt Robinson | Updated on February 03, 2015

(Bloomberg) — Standard & Poor’s $1.5 billion settlement with the U.S. Justice Department, more than a dozen states and the biggest U.S. pension fund today will let the world’s biggest rating company move beyond a bruising legal battle, at a steep cost.

S&P, a unit of McGraw Hill Financial Inc., will pay more than a year’s profit to settle suits that it inflated ratings on subprime-mortgage bonds at the center of the 2008 financial crisis. S&P sealed the deal without admitting wrongdoing. Ending the costly legal battle will help the company close a profit gap with its biggest competitor, Moody’s Corp.

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