China is setting up a semi-official credit rating firm that breaks with the mainstream Western pricing model by charging investors rather than issuers to assess creditworthiness.  The new agency is funded by the National Association of Financial Market Institutional Investors (NAFMII), a trade group that comes under the wing of the People’s Bank of China.  Liu Shiyu, a central bank vice governor, emphasized the importance for ratings agencies of making independent risk assessments.  Source: Reuters

BIIA Newsletter October I – 2010 Issue