In a move to slight ‘foreign’ rating agencies, China and Russia have announced plans to create a joint rating agency. Anton Siluanov, Russia’s finance minister stated: “In the beginning, the agency will assess Russian and Chinese investment projects with a view to attracting a number of (investors from) a number of Asian countries. Details about timing and conditions leading up to the creation of the agency was not provided. It is assumed that China based rating agency Dagong and Russian state backed institution will be involved.
The bias against foreign rating agencies has intensified since sanctions were levied against Russia in retaliation for its invasion of the Crimea. There has been a long standing suspicion that ratings by foreign rating agencies could be falsified to cause economic damage. Western investors may have the same notion about Russian / Chinese ratings. Nevertheless a little competition does not hurt.
Source: Financial Times