Chinese ratings agency

[happytown]

from Wed 14/07/10 smh (sorry no link)

China agency 'downgrades' US Treasuries

China is trying to turn the world of credit ratings on its head, by unveiling rival sovereign debt ratings that question the credtiworthiness of major developed economies.

In its first report on soveriegn debt, Dagong Global Credit Rating gave US Treasury bonds a AA rating with negative outlook, several rungs below the top AAA that it gave to just seven economies, including Australia.

In contrast, the major Western ratings agencies Standard & Poor's, Moody's and Fitch regard US government bonds as the world's safest asset - a view shared by the markets.

Accusing the Western agencies of bias, Dagong also issued relatively low AA- ratings to Japan, Britain and France because of their large debt loads and poor growth prospects.

...

china got an AA+ rating as opposed to S&P which gave it an A+ rating

the story implies that the claim of independence and impartiality of the ratings are questionable as the report was launched at Xinhua News Agency, 'the ruling Communist Party's main propaganda outlet'

this in spite of the chinese govts substantial holding of US Treasury bonds - why would thay talk down their own investment

NZ and Singapore also received AAA

bearing in mind the asleep at the wheel nature of the ratings agencies, or worse, during the GFC a ratings agency viewing the world thru a different set of eyes should be welcomed

 

[wildkactus]

Here is the link to the company

dagong credit

and here is the press release for the report
Press release

happy trading