Dagong Global Credit Rating
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|Guan Jianzhong (Chairman)|
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". 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.
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-).
- 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
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.
- 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
Dagong has been described as one of the few notable non-US based credit rating agencies. but others have described Dagong's ratings as, "hardly followed outside China."
- 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
- "Symbols and Definition of Dagong’s Credit Rating Scale" (pdf). Dagong Global Credit Rating Co. Retrieved 9 February 2011.
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