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China rating agency condemns rivals
Key Excerpts from Article on Website of Financial Times
Posted: August 9th, 2010
http://www.ft.com/cms/s/0/5632a0b8-94b7-11df-b90e-00144feab4...
The head of Chinas largest credit rating agency has slammed his western counterparts for causing the global financial crisis and said that as the worlds largest creditor nation China should have a bigger say in how governments and their debt are rated. The western rating agencies are politicised and highly ideological and they do not adhere to objective standards, Guan Jianzhong, chairman of Dagong Global Credit Rating, told the Financial Times. China is the biggest creditor nation in the world and with the rise and national rejuvenation of China we should have our say in how the credit risks of states are judged. On the corporate side, Mr Guan argues Moodys Investors Service, Standard & Poors and Fitch Ratings the three companies that dominate the global credit rating industry have become too close to the clients they are supposed to be objectively assessing. He specifically criticised the practice of rating shopping by companies who offer their business to the agency that provides the most favourable rating. In the aftermath of the financial crisis rating shopping has been one of the key complaints from western regulators , who have heavily criticised the big three agencies for handing top ratings to mortgage-linked securities that turned toxic when the US housing market collapsed in 2007.
Note: For key news articles on the global financial crisis, click here.
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