Dagong Global Credit Rating Co

Chinese Rating Agency Warns Coming Crisis Is Worse Than 2008, Blames US ‘Printing Press’

February 6, 2015February 6, 2015 by Infinite

2008 will look like a cakewalk in comparison to what lies ahead.

– Chinese Rating Agency Warns Coming Crisis Is Worse Than 2008, Blames US “Printing Press” (ZeroHedge, Feb 5, 2015):

The head of China’s Dagong Rating Agency, Guan Jianzhong, had some very blunt words for the world’s investors and policymakers overnight. As ITAR-TASS reports, Jianzhong warned , “the world economy may slip into a new global financial crisis in the next few years… that is even worse than in 2008.”

Read moreChinese Rating Agency Warns Coming Crisis Is Worse Than 2008, Blames US ‘Printing Press’

Russian Debt Safer Than U.S.? So Says China Rating House Dagong

January 9, 2015 by Infinite

– Russian Debt Safer Than U.S.? So Says China Rating House Dagong (Bloomberg, Jan 8, 2015):

A currency crisis, recession and plunge in the price of its key export don’t mean Russia is any less creditworthy than the U.S., according to one of China’s biggest debt-rating companies.

Just the opposite — it’s a better credit risk, says Dagong Global Credit Rating Co. The firm, which downgraded U.S. government debt in October 2013 to A-, today said it has decided to maintain Russia’s rating at A with a stable outlook.

Read moreRussian Debt Safer Than U.S.? So Says China Rating House Dagong

9 Signs That China Is Making A Move Against The U.S. Dollar

October 18, 2013 by Infinite

The unofficial China gold holdings number since 2009 based on our internal calculations: about 2500 tons higher, which would make it the world’s second largest official gold holder below the US and surpassing Germany, and rising at 100 tons per month.

– 9 Signs That China Is Making A Move Against The U.S. Dollar (Economic Collapse, Oct 17, 2013):

On the global financial stage, China is playing chess while the U.S. is playing checkers, and the Chinese are now accelerating their long-term plan to dethrone the U.S. dollar. You see, the truth is that China does not plan to allow the U.S. financial system to dominate the world indefinitely. Right now, China is the number one exporter on the globe and China will have the largest economy on the planet at some point in the coming years. The Chinese would like to see global currency usage reflect this shift in global economic power. At the moment, most global trade is conducted in U.S. dollars and more than 60 percent of all global foreign exchange reserves are held in U.S. dollars. This gives the United States an enormous built-in advantage, but thanks to decades of incredibly bad decisions this advantage is starting to erode. And due to the recent political instability in Washington D.C., the Chinese sense vulnerability. China has begun to publicly mock the level of U.S. debt, Chinese officials have publicly threatened to stop buying any more U.S. debt, the Chinese have started to aggressively make currency swap agreements with other major global powers, and China has been accumulating unprecedented amounts of gold. All of these moves are setting up the moment in the future when China will completely pull the rug out from under the U.S. dollar.

Read more9 Signs That China Is Making A Move Against The U.S. Dollar

China’s Dagong Downgrades US Credit Rating From A To A-

October 17, 2013 by Infinite

– China’s Dagong Downgrades US To A- From A (ZeroHedge, Oct 16, 2013):

Since all US rating agencies (Fitch is majority French-owned) have been terrified into submission and will never again touch the rating of the US following the DOJ’s witch hunt of S&P, any US rating changes on the margin will come from abroad. Like China’s Dagong rating agency, which several hours ago just downgraded the US from A to A-, maintaining its negative outlook. The agency said that while a default has been averted by a last minute agreement in Congress, the fundamental situation of debt growth outpacing fiscal income and GDP remains unchanged. “Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future.”

Among the other Dagong zingers:

Read moreChina’s Dagong Downgrades US Credit Rating From A To A-

Russia Seeks To Loosen US Rating Credit-Rating Dominance, May Set Up Independent Rival Next Year

July 13, 2011July 13, 2011 by Infinite

– Russia Seeks to Loosen Rating Companies’ Grip (Bloomberg, July 13, 2011):

Russia and members of the Eurasian Economic Community, a grouping of former Soviet republics, are seeking to loosen the dominance of U.S. credit-rating companies and may set up an independent rival next year.

Prime Minister Vladimir Putin has said he’s an “ardent supporter” of the plan because Russia’s debt grade is an “outrage” that lifts corporate borrowing costs and increases risks. The nation’s sovereign credit rating was last raised by New York-based Moody’s Investors Service in 2008 to Baa1, the third-lowest investment grade, one step above Brazil and four below China.

“It’s madness to trust American rating agencies,” Sergei Glazyev, the group’s deputy general secretary, said in an interview in Moscow yesterday. “The market is objectively interested in new reference points.”

Russia is championing a new ratings company after Poland said last week it may use its six-month term holding the rotating presidency of the European Union to campaign for an independent European credit evaluator. Dagong Global Credit Rating Co., the first domestic rating company set up in China, began issuing sovereign ratings a year ago.

Russia is rated A by Dagong, one level below the U.S. Moody’s ranks Russia seven steps lower and Standard & Poor’s and Fitch Ratings eight levels below the United States’ AAA grade, their highest.

Read moreRussia Seeks To Loosen US Rating Credit-Rating Dominance, May Set Up Independent Rival Next Year

China’s Leading Credit Rating Agency Cuts US Credit Rating to A+

November 9, 2010November 9, 2010 by Infinite

Nov. 09 (Bloomberg) — China’s Dagong Global Credit Rating Co. reduced its credit rating for the U.S. to A+ from AA, citing a deteriorating intent and ability to repay debt obligations after the Federal Reserve announced more monetary easing.

The credit outlook for the U.S. is “negative,” as the Fed’s plan to buy government debt will erode the value of the dollar and “entirely encroaches” on the interests of creditors, analysts at Dagong, one of China’s five official ratings companies, said in a statement. The U.S. is rated Aaa and AAA by Moody’s Investors Service and Standard Poor’s Corp., the highest credit ratings of the New York-based companies.

The downgrade came before a meeting of Group of 20 leaders this week in Seoul and as the U.S. steps up pressure for China to let the yuan strengthen to help reduce the U.S. trade deficit. China countered the criticism by saying U.S. economic policies threaten the stability of developing nations.

“The general market perception is that there’s a risk that the Chinese rating agency is playing a bit more political game than providing independent analysis,” said Ian Lyngen, a government bond strategist in Stamford, Connecticut, at CRT Capital Group LLC, in a telephone interview. “I don’t think it has the same ramification as a downgrade by mainstream rating agencies such as S&P and Moody’s. That said, the reasons that the credit rating of the U.S. may come under pressure are obvious to most people.”

‘Serious Defects’

China’s Leading Credit Rating Agency Strips Western Nations of AAA Status

July 13, 2010 by Infinite

China’s leading credit rating agency has stripped America, Britain, Germany and France of their AAA ratings, accusing Anglo-Saxon competitors of ideological bias in favour of the West.

Beijing office buildings – Chinese rating agency strips Western nations of AAA status (AFP)

Dagong Global Credit Rating Co used its first foray into sovereign debt to paint a revolutionary picture of creditworthiness around the world, giving much greater weight to “wealth creating capacity” and foreign reserves than Fitch, Standard & Poor’s, or Moody’s.

The US falls to AA, while Britain and France slither down to AA-. Belgium, Spain, Italy are ranked at A- along with Malaysia.

Meanwhile, China rises to AA+ with Germany, the Netherlands and Canada, reflecting its €2.4 trillion (£2 trillion) reserves and a blistering growth rate of 8pc to 10pc a year.

Dominique Strauss-Kahn, chief of the International Monetary Fund, agreed on Monday that the rising East is a transforming global force. “Asia’s time has come,” he said.

The IMF expects Asia to grow by 7.7pc in 2010, vastly outpacing the eurozone at 1pc and the US at 3.3pc. Emerging nations hold 75pc of the world’s $8.4 trillion (£5.6 trillion) of reserves.