Dagong Global Credit Rating

Dagong Global Credit Rating Co.
Industry Financial Services
Founded 1994
Headquarters Beijing, China
Key people Guan Jianzhong (Chairman)
Website dagongcredit.com

Dagong Global Credit Rating (大公国际资信评估有限公司; pinyin: Dàgōng Guójì Zīxìn Pínggū Yǒuxiàn Gōngsī) is a credit rating agency based in China. It is one of the few notable non-US based credit rating agencies.[1]

Dagong has given the US debt a lower credit rating (A+ since November 2010 and A since August 2011)[2] than that given by the three traditional rating agencies Moody's, Standard and Poor's and Fitch.[3] The U.S. Securities and Exchange Commission has refused to recognize Dagong's ratings because of the commission's inability to supervise the Beijing-based agency.[4]

Contents

Long-term credit ratings

Dagong rates borrowers on a scale from AAA to C. Intermediate ratings are offered at each level between AA and CC (e.g., AA+, AA, and AA-).[5]

Short-term credit ratings

Debt with maturity dates of 1 year or shorter are rated on a scale from A-1 to D. No intermediate ratings (e.g., B+ and B-) are used. [5]

References

  1. ^ http://finance.yahoo.com/banking-budgeting/article/112029/what-is-the-us-governments-credit-score?mod=bb-creditreports
  2. ^ Beaumont, Peter (11 November 2011). "Chinese ratings agency threatens US with new debt downgrade". The Guardian (London). http://www.guardian.co.uk/business/2011/nov/12/chins-threatens-us-with-new-debt-downgrade. 
  3. ^ http://finance.yahoo.com/news/Are-US-Treasuries-Really-a-etfguide-68057243.html?x=0 Are U.S. Treasuries Really a Safe Haven?
  4. ^ "Chinese agency downgrades U.S. credit rating". CNN. 1 August 2011. http://www.cnn.com/2011/BUSINESS/08/02/china.us.rating/index.html?hpt=hp_t2. 
  5. ^ a b "Symbols and Definition of Dagong’s Credit Rating Scale" (pdf). Dagong Global Credit Rating Co.. http://www.dagongcredit.com/dagongweb/uf/rating%20definition.pdf. Retrieved 9 February 2011. 

External links