Italian investigative authorities have started investigating credit rating agencies on suspicion of manipulating markets by issuing ratings without a solid basis. The investigation appears to be retaliatory action for the agencies' downgrading of bonds of European countries.
It is reported that a search warrant in one of the cases stated that a downgrading of Italy's sovereign rating was based on "untruthful, tendentious, incoherent and unfair" assessments and data.
European government officials are critical of credit rating agencies because they think that they are too quick to downgrade the bonds of European Union member countries and are thus functioning as a guide for speculative funds. Unless something is done to rectify the current situation, the world economic system could face a serious breakdown.