Standard & Poor's is deepening the scope of its hedge fund ratings to take into account a broader range of factors as both investors and regulators call for greater tranparency in the opaque hedge fund industry.

During a conference call, Tanya Azarchs, a financial institutions credit analyst at S&P, said the new criteria include a greater focus on operational risk including governance, legal, organisational, and back-office issues. The criteria also include more quantitative analysis.