Merkel backs creation of European credit rating agency

Senior European politicians including Germany's Angela Merkel have indicated their support for the creation of a European credit rating agency.

And in a related move on Monday (3 May), the European Central Bank decided to loosen the terms under which it lends money to Greek banks, indicating that it will now accept Greek government bonds below 'investment' grade as collateral.

The pivotal role played by the world's top three credit rating agencies, all of them US-based, has been ...