S&P Global Ratings has withdrawn a controversial part of a proposed revamping of its model for determining creditworthiness of insurers following criticism that its move appeared to be self-serving and could hurt competition.
The firm’s proposal had managed to anger insurance companies, state insurance regulators, rival ratings firms and even a bipartisan group of lawmakers on Capitol Hill, The Wall Street Journal detailed last month.
S&P’s about-face, announced Monday, follows a comment letter submitted by the antitrust division of the U.S. Justice Department. The letter cautioned that the proposed changes might warrant scrutiny by the division to determine whether there were violations of federal antitrust law.
S&P said in a news release that it is considering alternatives for the withdrawn elements of its proposal,…
