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Brussels won’t set up its own ratings agency, says Barroso

Jose Manuel Barroso has ruled out creating a Brussels ratings agency to rival established credit firms, following a series of nation downgrades by established assessors.

The European Commission chief and Portuguese politician said there were questions over the role of ratings agencies in the lead-up to the global financial crisis, but dismissed suggestions the EU should set up its own.

"We have no intention to create any kind of public ratings agency," Mr.. Barroso said in Sydney..

EU and national leaders have been highly critical of the agencies, who have progressively downgraded weaker euro zone members.

They accusing them of worsening the debt situation.

European Central Bank executive Jose Manuel Gonzalez-Paramo last month accused the major agencies of "flagrant conflicts of interest".

And he added that was "possible and desirable" to increase competition in the industry.

The comments followed Standard & Poor's dramatic downgrade of the US from its top-flight triple-A rating.