Rating Agency Feud: S&P vs. Dagong…For Now

Politics / Credit Crisis 2010
Aug 05, 2010 - 09:51 AM

By: Dian_L_Chu

It all started almost a month ago when Dagong, the largest credit rating agency in China, took on S&P, Moody’s and Fitch. Dagong issued its first international sovereign risk report on July 11 by giving 27 countries out of the 50 a markedly different rating than the Western big three.

Dagong did not stop there. It also openly slammed the Western rivals in a Financial Time interview that "The reason for the global financial crisis and debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor's repayment ability."

Guan Jianzhong, chairman of Dagong later also criticized Moody's, Standard & Poor's and Fitch of becoming politicized, “too close to the clientsâ€