Beijing News recently reported that the Dagong Global Credit Rating Group, China’s primary credit rating company, was under fire. China’s National Association of Financial Market Institutional Investors (NAFMII) just issued a “severe warning” to Dagong and banned Dagong from doing business in the debt financing tool ratings market segment for one year. Investigations showed that Dagong was providing direct consulting services to companies to which it had been issuing credit ratings. Dagong provided forged documents to the authorities during the investigations, trying to hide its conflict of interest. Dagong is China’s primary credit rating company. It was established to compete against global leaders like S&P, Moody’s, and Fitch. It is the only rating company in China authorized by the central bank to rate all debt financing tools (except government bonds) and the participating companies that use those tools.
Source: Beijing News, August 17, 2018