On Tuesday, Moody's managed to get away from the clutches of the Securities and Exchange Commission. In spite of having discovered data, which substantiated that the Company deceived the investors, federal regulators said that they will not take any legal action against the firm.

The Company, which is one of the three leading credit-rating firms, misapprehended a lot of the securities during the economic disaster. The SEC said that officials from Moody's had discerned that they had released excessive ratings but fearing that "downgrades could negatively affect Moody's reputation"; they did not try to set it right.

On Tuesday, Michael Adler, a Moody's Spokesman said, "Moody's is pleased that this matter has been resolved and that the commission determined the investigation should be closed without pursuing any enforcement action”.

The Securities and Exchange Commission said that owing to "jurisdictional" constraints, it has decided not to sue the Company. It is said that the agency’s probe occurred in Europe, which was out of its reach.

According to the regulation that was passed this summer to revamp fiscal laws, SEC might have settled on a different verdict. It is rare that the agency releases a report, when it winds up an inspection without taking any legal action.