Moody'sCorp. served a notice of appeal with respect to a Hong Kongtribunal's decision to impose an HK$11 million fine on the rating agency'slocal unit, Moody's Investors Service Hong Kong Ltd., Bloomberg News reportedApril 28, citing Donough Foley, senior vice president for government and publicaffairs at Moody's Asia-Pacific.
The Securities and Futures Appeals Tribunal on March 31upheld an earlierpenalty on the rating agency for certain lapses in its report published in July2011 that resulted in the decline of certain Chinese company shares. The reporthad tagged some Chinese companies as having a high number of red flags.
An investigation by the Securities and Futures Commissionshowed that the report violated certain code of conduct, including factualinaccuracies, and penalized the firm.