The European Commission wants to cooperate closely with the U.S. Securities and Exchange Commission (SEC) on the planned regulation of credit rating agencies, the German financial weekly Euro am Sonntag reported.

FRANKFURT (Reuters) - The European Commission wants to cooperate closely with the U.S. Securities and Exchange Commission (SEC) on the planned regulation of credit rating agencies, the German financial weekly Euro am Sonntag reported.

Dow Chemical, which earlier Thursday announced a deal to acquire Rohm and Haas for $18.8 billion, has early indication from credit ratings agency Moody's that its debt will remain investment grade following the deal, said Chief Executive Andrew Liveris on Thursday.

Already under intense scrutiny for its role in the credit crisis, the Moody’s Corporation said Tuesday that some employees had violated its code of conduct in rating complex European securities, The New York Times Reports.

Moody's Investors Service, a credit rating agency, said Tuesday it disciplined employees for considering improper factors when assigning ratings to complicated European debt products known as constant-proportion debt obligations.

The U.S. Federal Reserve cannot lower interest rates at the moment, given high oil prices and the spectre of inflation, John Lonski, chief economist at Moody's rating agency, told La Repubblica newspaper.

New York Attorney General Andrew Cuomo on Thursday reached agreements with Moody's Investors Service, Standard & Poor's and Fitch Ratings that will change the way credit rating agencies are paid by investment banks for reviewing mortgage-backed securities.

Moody's Investors Service and other rating agencies have signed an agreement with New York Attorney General Andrew Cuomo addressing rating practices, including fees, Moody's Chairman Ray McDaniel said Thursday.

Three large credit rating firms are close to announcing a broad deal with the New York attorney general to reform some of their core business practices, The New York Times reports.

Credit rating agencies will be banned from helping to design products they also grade as part of a tougher industry code of conduct to tackle issues raised by the U.S. subprime mortgage crisis such as conflicts of interest.

Troubled bond insurer Ambac Financial Group said it has rejected extra guarantees on municipal bonds offered by billionaire investor Warren Buffett -- and it may not be the first to have done so.

Major rating agencies are holding off downgrading bond insurers MBIA and Ambac Financial Group while they attempt to work out a bailout plan, bankers working on the bailout told CNBC.

Bond insurers, whose foray into the subprime debt market has led to billions of dollars in losses, are facing more downgrades of their prized Triple A rating.

Hedge Fund manager William Ackman, of Pershing Square Capital, is submitting data to the SEC and insurance regulators in New York State alleging that bond insurers MBIA and Ambac are understating their losses.

Wall Street bond rating agencies are poised to downgrade two big bond insurers, Ambac Financial Group and MBIA, even though New York state insurance regulars would like to get a postponement until the state can develop a bailout package, CNBC has learned.