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SEC concedes challenges in credit-rating probes


(Reuters) - The Securities and Exchange Commission faces hurdles proving wrongdoing at credit-rating agencies, the agency's enforcement chief said, pointing to the complexity of the cases and the industry's strong legal defenses.

SEC Enforcement Director Robert Khuzami's comments to Reuters came a day after McGraw-Hill Cos Inc disclosed on Monday that the agency may sue its Standard & Poor's unit for breaking securities laws.

Khuzami declined to comment specifically on S&P, but his remarks show how a case against S&P or other credit raters would be far from easy to win.

"There are some statutory challenges in the law, and some disclosure-related challenges that are unique to credit-rating agencies that can make the cases more challenging," Khuzami said.

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