Commonwealth Bank told investors Sigma credit rating withdrawal a ‘technical’ issue

Class Actions 2019-03-21 5:04 pm By Cat Fredenburgh | Melbourne

The Commonwealth Bank of Australia, facing cross-claims by credit ratings agency Fitch in a class action alleging it gave false or misleading double A and triple A ratings to synthetic CDOs backed by Sigma Financial, told investors Fitch’s withdrawal of Sigma’s credit rating prior to the collapse of the $27 billion investment fund was a “technical” issue, the bank has admitted.