Bond chaos forecast after Wall Street reform

Widespread chaos has been predicted in the bond markets as the world's three largest ratings agencies said their ratings could not be used in any marketing material.

Uncertainty over the implications of Dodd-Frank Wall Street Reform and Protection Act, which was signed into law this week, led Standard & Poor's, Moody's and Fitch to ask directly or imply their ratings should no longer be used in any new debt issues, the Telegraph reports. In a statement issued by Fitch on Monday, it said it could not "consent to including Fitch credit ratings in prospectuses and registration statements at this time". S&P and Moody's have issued similar statements as they assess the impact of the new regulation which could expose them to more legal action in future ...