Dagong Europe Credit Rating
 | |
| Industry | Financial Services |
|---|---|
| Founded | 2012 |
| Headquarters | Milan, Italy |
| Website | Official website |
Dagong Europe Credit Rating[1] srl (Dagong Europe) was established in March 2012 with headquarters in Milan, Italy. In June 2013, it was registered and received authorisation from the European Securities and Markets Authority ('ESMA') under the Article 16 of the Credit Rating Agency (CRA) regulation. It is the first entity to have applied for registration as a CRA with shareholders from the People's Republic of China.[2] It is recognised by the Joint Committee of the three European Supervisory Authorities (EBA, ESMA and EIOPA – ESAs) as External Credit Assessment Institutions (ECAI) operating in the European Union.
Dagong Europe was founded as a joint venture between Dagong Global Credit Rating (60% ownership) headquartered in Beijing, China, and Mandarin Capital Partners, a Private Equity fund linking Mid-Market European businesses with Chinese partners.[3][4] In December 2014, a share purchase agreement was reached between the two parties and Dagong Global Credit Rating became the sole shareholder of Dagong Europe in January 2015.[5] In July 2016, Dagong Europe has opened its branch office in Frankfurt, Germany.
Dagong Europe provides credit opinions on financial institutions including insurance companies and non-financial corporates. Dagong Europe does not provide sovereign ratings or credit rating on securitisations.[6]
The board of directors is chaired by Guan Jianzhong as Chairman and Chairman at Dagong Global.[7]
Credit ratings
- Long-Term Credit Rating Scale: Assigned to issuers (debt obligations) with tenors exceeding 12 months.
- Short-Term Credit Rating Scale: Assigned to issuers (debt obligations) with tenors below 12 months. Could be extended under some certain circumstances.[8]
Long-term ratings
Dagong Europe's Long-Term Credit Ratings consists of ten categories, ranging from ‘AAA’ – the highest credit quality, to ‘D’ – an actual default context.
Each category (except ‘AAA’ and credit ratings below ‘CCC’) can be further divided into three sub-categories:[8]
(+): highest position
No symbol: middle and
(−): lowest position within the category.
The ten categories identify the credit quality of the debt obligators are:
- AAA: Highest Credit Quality
- AA: Very High Credit Quality
- A: High Credit Quality
- BBB: Medium Credit Quality
- BB: Speculative Credit Quality
- B: Highly Speculative Credit Quality
- CCC: High Credit Risk
- CC: Very High Credit Risk
- C: Highest Credit Risk
- D: Default status
Short-term ratings
Dagong Europe’s Short-Term Credit Ratings consist of six categories, ranging from ‘A-1’ – the highest financial capacity to fulfill short-term debt obligations, to ‘D’ – default.
The six categories identify the debt issuers's financial strength within the next 12 months are:[8]
- A-1: Superior short-term financial strength
- A-2: Strong short-term financial strength
- A-3: Sufficient short-term financial strength
- B: Acceptable ability to repay debt obligations
- C: Questionable ability to repay debt obligations
- D: Default status
Long-term and short-term credit rating relationship
The comparison is only indicative and may be subject to changes. (Long-Term = Short-Term)[8]
- From AAA to A = A-1
- A− = A-1 or A-2
- BBB+ = A-2
- BBB = A-2 or A-3
- BBB− = A-3
- From BB+ to B− = B
- From CCC+ to C = C
- D = D
References
- ^ "Dagong Europe". Dagong Europe. Retrieved 2014-02-19.
- ^ Jones, Huw (2013-06-07). "Chinese rating agency Dagong gets EU approval | Reuters". Uk.reuters.com. Retrieved 2014-02-19.
- ^ "Home". Mandarincp.com. 2013-01-15. Retrieved 2014-02-19.
- ^ "Interview: Dagong Europe brings new angle in int'l rating industry". chinadaily.com.cn. 2013-07-02. Retrieved 2014-02-19.
- ^ Title: Dagong Global eyes enhanced placement of Dagong Europe, Date: 2014-Dec-08
- ^ "China's Dagong eyes up to 10 pct of European ratings market". Reuters. 2013-07-02. Retrieved 2014-02-19.
- ^ "Chinese rating agency Dagong starts business in Europe - Xinhua | English.news.cn". News.xinhuanet.com. 2013-06-13. Retrieved 2014-02-19.
- ^ a b c d "Dagong Europe Credit Rating Definitions" (PDF). Dagongeurope.com. 18 June 2013. Retrieved 2014-02-19.