The rating agencies have been widely criticised for their
role in the sub-prime crisis and the wider credit crunch. In
the past, the agencies have managed to avoid liability for
investment disasters. This time things may be different. There
have already been claims against them in the US, and it has
been suggested that the scale of the losses means that claims
in England are inevitable - but what are the prospects of
success?
To whom was a duty owed?
Any claim against the rating agencies is most likely to be
for negligent misstatement. To be successful, an investor must
establish that the agency owed it a duty of care. There is no
existing authority establishing a duty in these circumstances,
so claimants will be moving into virgin territory on this
issue. There are various legal analyses which may lead to a
duty but, in general terms, the claimant must establish that
the agency assumed
