With the SEC turning down its application to become a Nationally Recognized Statistical Rating Organization (NRSRO), Dagong Global Credit Rating of China urges the US government to provide a fair trade environment for Chinese financial organizations. Dagong indicated that it may change tack and focus on providing corporate ratings in other international markets. Guan Jianzhong, chairman of Dagong, commented in a recent interview: “We are currently reconsidering our plan to expand in the overseas markets.”

Unfortunately Dagon uses misleading rhetoric in bringing its case to the public. It complains about unfair regulations for American rating agencies to retain their global monopoly. This ignores the fact that there are ten NRSOs operating in the USA, not just the three largest one repeatedly attacked by Dagong. Four of the ten are foreign owned, all of which started to rate US companies before becoming NRSROs. Nothing prevents Dagong from opening an office in the USA to rate companies.

The credit and investment community generally welcomes new competition however the negative rhetoric used in recent interviews seldom wins friends and new customers. BIIA would welcome a more rational debate.

Source: Press Commentary – to read the full story click on the link: https://2018.biia.com/cci_industry_news.php