* Rating agencies subject to special examinations

* SEC wants to cut down on "credit rating shopping"

* Staff preparing recommendations on mutual fund fees

* SEC mulls asking Congress for new authorities (Recasts first paragraph to mention special examinations; adds Kanjorski comments, legislation)

WASHINGTON, July 13 (Reuters) - Credit rating agencies, such as Standard & Poor's and Moody's (MCO.N: Quote, Profile, Research), are now being targeted by a squad of examiners set up by the Securities and Exchange Commission and are subject to 'special' examinations.

The heightened supervision was ordered by SEC Chairman Mary Schapiro, who has also directed staff to consider bringing in new regulations, particularly to prevent companies from shopping around for favorable ratings.

Ratings agencies have been widely criticized for their role in the financial crisis, particularly for assigning various mortgage-backed securities and other financial instruments top ratings only to see them turn into toxic assets.

The SEC has already taken steps to clamp down on business practices that could present a conflict of interest such as banning an employee from structuring the same product he or she helps rate. But Schapiro has said more has to be done.

"I also have directed commission staff to explore possible new regulations in this area, including limiting the potential for rating shopping," Schapiro said in prepared remarks to be delivered to a House Financial Services subcommittee on Tuesday. Her testimony was found on the full committee's website on Monday.