The U.S. Securities & Exchange Commission is seeking to suspend Standard & Poor’s from grading commercial mortgage bonds in what would be the agency’s toughest action yet against a major credit rater, a person with knowledge of the matter said.

S&P parent McGraw Hill Financial is still in talks over a possible settlement with the SEC, which has been investigating whether the firm bent rating criteria to win business in 2011, said the person, who asked not to be named because the talks aren’t public.

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