Connecticut Sues Ratings Agencies

Unhappy with its bond rating, the state of Connecticut has chosen to sue the credit -ratings agencies.

Attorney General Richard Blumenthal alleges the agencies intentionally gave lower ratings than the state deserved, which resulted in higher costs for taxpayers.

Moody's(MCO Quote), McGraw-Hill's (MHP Quote)Standard & Poor's unit and Fitch were all named in the suit. Blumenthal believes the low ratings caused the state's municipalities to purchase bond insurance, which wouldn't have been needed if the ratings were higher. ...