Monday, 5 November 2012

Australia: Federal Court finds credit rating agency liable for 'misleading and deceptive' AAA rating

Judgment was given today in Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 5) [2012] FCA 1200. This is an important decision of the Federal Court of Australia which is attracting international attention because of the trial judge's finding that a credit rating agency was liable for the misleading and deceptive triple A rating it gave to a CPDO (constant proportion debt obligation). The judgment is very long but there is a summary near the start.

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