U.S. Justice Dept investigating Moody's for mortgage deal ratings-WSJ

Feb 1 (Reuters) - The U.S. Justice Department is investigating Moody's Investors Services for issuing favorable grades on mortgage deals in the lead-up to the financial crisis, the Wall Street Journal reported on Sunday.

The federal probe comes as the Justice Department nears a settlement with Standard & Poors Ratings Services over similar actions, the Journal reported.

(Reporting by Suzanne Barlyn)