(Bloomberg) -- Standard & Poor’s $1.5 billion settlement with the U.S. Justice Department, more than a dozen states and the biggest U.S. pension fund today will let the world’s biggest rating company move beyond a bruising legal battle, at a steep cost.

S&P, a unit of McGraw Hill Financial Inc., will pay more than a year’s profit to settle suits that it inflated ratings on subprime-mortgage bonds at the center of the 2008 financial crisis. S&P sealed the deal without admitting wrongdoing. Ending the costly legal battle will help the company close a profit gap with its biggest competitor, Moody’s Corp.

A $1.375 billion settlement to be split evenly with the Justice Department and 19 states and the District of Columbia caps a rancorous two-year court battle during which S&P accused the Justice Department of cracking down unfairly on the company after its 2011 decision to downgrade U.S. sovereign debt to AA+ from AAA.