Trichet unhappy with ratings "oligopoly"

FRANKFURT (Reuters) - European Central Bank President Jean-Claude Trichet joined in criticism of the "oligopolistic" role of ratings agencies in the global financial system at a news conference on Thursday.

European politicians have accused credit rating agencies of anti-European bias after Moody's downgrade of Portugal's debt to "junk" cast new doubt on EU efforts to rescue distressed euro zone states without debt restructuring.

"It is clear that there is an element of pro-cyclicality which is embedded in the functioning of credit rating agencies which is not optimal," Trichet told a news conference after the central bank raised interest rates.

"It is also clear that a small oligopolistic structure is not what is ... desirable at the level of global finance."

German Finance Minister Wolfgang Schaeuble said on Wednesday he believed limits should be put on the rating agencies' "oligopoly."