Chinese ratings agency

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.

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