Standard and Poor's sign on the side of a building
Media playback is unsupported on your device

Standard & Poor's expects lawsuit over subprime ratings

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

The civil lawsuit would focus on S&P's high ratings in 2007 for some mortgage-backed securities that later collapsed in value, said the agency.

S&P says the case is entirely without factual or legal merit.

The BBC's Beth McLeod reports.

Go to next video: Should UK fear for its AAA credit rating?