US sues Standard & Poor's over mortgage ratings

International rating agency Standard & Poor's says it is to be sued by the US government over its assessment of mortgage bonds before the financial crisis.

S&P says the civil lawsuit would focus on its high ratings in 2007 for some mortgage-backed securities that later collapsed in value.

However, the agency says the case is entirely without factual or legal merit.

The suit would be the first such case over alleged wrongdoing by a ratings agency tied to the financial crisis.

S&P said the justice department had informed them of the impending civil suit, although the federal agency declined to comment.

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