“The
new Universal Credit Rating Group (UCRG) is being set up to rival the
existing agencies Moody's, S&P and Fitch, and its first rating
will be issued this year. The setting up of UCRG is in its final
stages, ready to challenge the ‘Big Three’ that currently
dominate the industry, the Managing Director of RusRating Aleksandr
Ovchinnikov told Sputnik News Agency on Tuesday.”
“The
news comes on the heels of Fitch’s decision to follow S&P in
downgrading Russia’s sovereign credit rating to BBB-, a step above
junk level and on par with India and Turkey. [...] The new agency
will be based in Hong Kong, and provide a check on the ‘Big Three’,
which some analysts say don’t provide an accurate reading of
economic situations. Many securities and bonds in the US that had
triple-A ratings in 2008 and were considered ‘safe’, turned out
to be a bubble, revealed by the subprime mortgage crisis.”
“Developed
economies are often given a free credit rating pass, whereas
developing economies are assigned more risky ratings, the RusRating
analyst said. [...] UCRG was officially created in June 2013 by
China’s Dagon, Russia’s RusRating and America's Egan-Jones
Ratings. Each member will hold an equal share in the venture, with an
initial investment of $9 million.”
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