S&P faces £20m cost in court

Australia’s Federal court has issued a landmark judgment against ratings agency Standard & Poor’s, saying it misled investors by giving its highest rating to derivatives that lost almost all their value in the financial crisis.

The judge said S&P and Dutch bank ABN Amro had deceived 12 local councils that bought the triple-A rated debt products. The court awarded the councils A$30 million (£20m) for losses and damages.

S&P said it plans to appeal the ruling.