E.U. states reached a deal on Wednesday on introducing mandatory registration and direct supervision of credit rating agencies, a spokesman for the Czech E.U. presidency said.

The sector has been criticized for failing to warn investors about risks in subprime-related products.

Ambassadors for the 27 E.U. states voted in favor of the measure, authored by the bloc\'s executive European Commission, that will affect companies such as Standard & Poor\'s Corp., Moody\'s Investors Service Inc. and Fitch Ratings Ltd.

"The E.U. ambassadors reached a preliminary deal on a measure to regulate credit rating agencies," the spokesman said.

The European Parliament has joint say on the measure and is due to vote in committee this month followed by a full session in April. Formal endorsement from E.U. finance ministers will also be needed.