S&P chief Deven Sharma to step down after US downgrade

Deven Sharma, the president of rating agency Standard and Poor's, will step down and leave the company by the end of the year, the agency announced late on Monday.

The announcement comes weeks after S&P historically downgraded the sovereign long-term debt rating, opening itself to flak from several quarters, particularly after it emerged that S&P had underestimated the country's funds.

The agency is under pressure on several fronts, including an inquiry by the Justice Department into its ratings of subprime mortgage securities and a push by activist investors to break up its parent company, McGraw-Hill.

Douglas Peterson (53), chief operating officer of Citigroup Inc's Citibank unit, will succeed Sharma on 12 September, the announcement said.

Sharma will remain at S&P through the end of the year in an advisory capacity, working with McGraw-Hill Cos chairman, president and chief executive Harold "Terry" McGraw III as the company explores a separation of its education business.

McGraw III is the current chairman of the US India Business Council (USIBC), the premier business advocacy organisation comprising of top companies from the two countries.