Dagong Global Credit Rating

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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.

In standard Mandarin, Dagong is first half of the four-character idiom Dagong wusi (大公无私) which can be translated into English as 'impartial and without prejudice'.[citation needed]

History[edit]

The company was established in 1994, following approval by the People's Bank of China and the State Economic and Trade Division of the People's Republic of China. In May 2009, an agreement of mutual cooperation was signed with Xinhua news agency, reported as "promiting a national credit rating system".[1] In 2010, the United States SEC rejected an application by Dagong to enter the US marketplace, on the grounds of its inability to control a transnational corporation. This has been criticised[by whom?] as a double standard, on the grounds that this was an unprecedented standard that was not previously applied to three other non-US credit ratings agencies already operating.[2]

Long-term credit ratings[edit]

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-).[3]

  • AAA: Highest credit rating
  • AA: Very High credit rating
  • A: High credit rating
  • BBB: Medium credit rating
  • BB: Low medium credit rating
  • B: Relatively low credit rating
  • CCC: Low credit rating
  • CC: Very low credit rating.
  • C: Lowest credit rating. Issuer is unable to meet financial obligations and possibly in the process of bankruptcy.

Short-term credit ratings[edit]

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.[3]

  • A-1: Highest credit rating
  • A-2: Good credit rating
  • A-3: Fair credit rating
  • B: Significant speculative credit rating
  • C: High default risk credit rating
  • D: Default

Credibility[edit]

Dagong has been described as one of the few notable non-US based credit rating agencies.[4] but others have described Dagong's ratings as, "hardly followed outside China."[5]

See also[edit]

References[edit]

  1. ^ http://news.xinhuanet.com/politics/2009-05/21/content_11414709.htm (Chinese) 新华社与大公国际签署合作框架协议
  2. ^ http://news.hexun.com/2010-10-11/125084648.html (Chinese) 大公国际入美遭拒 双重标准难以体现市场公平
  3. ^ a b "Symbols and Definition of Dagong’s Credit Rating Scale" (pdf). Dagong Global Credit Rating Co. Retrieved 9 February 2011. 
  4. ^ http://finance.yahoo.com/banking-budgeting/article/112029/what-is-the-us-governments-credit-score?mod=bb-creditreports
  5. ^ Christopher Langner (October 17, 2013). "DAGONG DOWNGRADES US TO A- FROM A". Reuters. Retrieved October 17, 2013. 

External links[edit]