Credit ratings: SEC seeks tighter rules for agencies rating debt

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SEC would require more details on each rating, bar sales staff from participating in ratings

WASHINGTON (AP) -- Federal regulators advanced tighter rules Wednesday for agencies that rate the debt of companies and governments, part of a broad effort to better oversee an industry blamed for helping fuel the 2008 financial crisis.

Credit ratings can affect a company's ability to raise or borrow money. They can also influence how much investors pay for securities.

But critics say the agencies have a conflict of interest because they are paid by the same companies they rate. The big three -- Moody's, Standard & Poor's and Fitch Ratings -- were criticized for giving low-risk ratings to high-risk mortgage securities ahead of the crisis. Those investments later soured when the housing market went bust.