Such law to limit the scope of rating agencies is vital in the economical turmoil we're living in. That's why I'm in favor of having an European rating agency IF the scope is limited to country/union companies (not even countries), like S&P (among others) rating US companies only and the European agency rating European companies only.
I agree with law and the rating agency on each region. Not only that we need something to lower the credit rating influence on the economy, nationally.
But for the time being dont use US base credit rating to rate your country. Dagong from China have a recognizable credit rating even its not approve by the US since Dagong been downgrading US year by year