 [12.07.10]
July 11, 2010, can be a historic day in the world of international financing. Dagong Global Credit Rating Co., Ltd., a professional rating agency of China, released its sovereign credit risk reports of 2010 and for the first time the sovereign credit risk ratings for 50 Countries in Beijing. As a non-western rating agency, this is not only the first one in China, but also the first one in the world, that releases information on sovereign credit risks. Norway is among the countries with top rating AAA, China and Germany belong to the AA+ group, USA and for example France is rated AA while Russia – together with amongst others Spain, Italy, Poland and Brazil is in the A- league.
The on-going financial crisis which originated from the U.S. and the latest Greek debt crisis, have fully reviewed the shortcomings and defects of existing sovereign credit rating agencies. In this context, the international community has reached consensus to reform the existing international credit rating system. Chinese President Hu Jintao has lately stressed at the fourth G20 summit in Toronto that : "we must develop an objective, fair, reasonable and uniformed method and standard for sovereign credit rating, so that the rating result can precisely reflect a country's economic situation as well as its level of credit risk."
In this background, Dagong has recently assigned sovereign ratings for 50 countries for the first time, the geographic locations of which are in different continents around the world. Among them are 20 countries in Europe, 17 in Asia, 2 in North America, 6 in South America, 3 in African and 2 in Oceania. The total GDP of these 50 countries accounted for 90% of that of the whole world, and nearly all the characteristics of typical regional credit risk are involved.
It reveals the distribution of credit risks around the world as well as and their changing trend. Among the 50 countries, the local currency sovereign credit risk for such countries as Norway, Australia, Denmark, Luxembourg, Switzerland, Singapore, New Zealand were assigned "AAA" ratings; China, Canada, the Netherlands, Germany were assigned "AA +"s, the United States and Saudi Arabia "AA"s; France , the United Kingdom, Korea and Japan got "AA-"s. The countries that were assigned local currency sovereign credit rating of "A-" level include Belgium, Chile, Spain, South Africa, Malaysia, Estonia, Russia, Poland, Israel, Italy, Portugal and Brazil.
A significant difference between Dagong and the three international rating agencies, i.e. Moody’s, S&P and Fitch in terms of their rating results is that Dagong emphasizes more on the country’s capability to pay its debt. (Source: Press release of Dagong Global Credit Rating Co
[ russia-media.RU – Murmansk & Shtokman News / FLAIT Murmansk ]
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