WASHINGTON -Connecticut Attorney General Richard Blumenthal yesterday sued Moody's Corp., Fitch Inc., and McGraw-Hill Cos., the parent company of Standard & Poor's, in a state court, charging they allegedly gave municipalities and their bonds lower credit ratings than were merited, costing taxpayers millions of dollars in unnecessary bond insurance and higher interest rates.

The suits come as the House Financial Services Committee yesterday approved a bill that would require the rating agencies to rate municipal general obligation bonds and other debt solely on the basis of repayment.

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