Ratings Agency Moody’s is appealing a HK$11 million ($1.4 million) fine after being accused of breaching\u00a0Hong Kong\u2019s regulatory code of conduct by\u00a0using an unsubstantiated\u00a02011 report on listed companies as a credit-rating tool.<\/p>\n
The regulatory panel in March affirmed an action against the company by the Securities and Futures Commission for breaching the regulator\u2019s code of conduct when it published a report on dozens of Chinese companies,\u00a0Bloomberg<\/a>\u00a0<\/strong>reported.<\/p>\n \u201cThe tribunal has been drawn to the conclusion that there was a failure in clear and unambiguous terms to set out the true nature and purpose of the red flag framework,\u201d the tribunal panel said in its March ruling.<\/p>\n \u201cThe evidence indicates that the market understood the red flag framework as providing some form of ranking system of credit risk and acted accordingly.\u201d<\/p>\n Moody\u2019s recently rated\u00a0South Africa\u00a0at \u201cBaa2\u201d, one notch higher than fellow ratings agencies S&P and Fitch, and two notches above junk status. It currently rates the country as having a negative outlook.<\/p>\n