Dagong
Encyclopedia
Dagong Global Credit Rating (大公国际资信评估有限公司; pinyin
: Dàgōng Guójì Zīxìn Pínggū Yǒuxiàn Gōngsī) is a credit rating agency
based in China
. It is one of the few notable non-US based credit rating agencies.
Dagong has given the US debt a lower credit rating (A+ since November 2010 and A since August 2011) than that given by the three traditional rating agencies Moody's
, Standard and Poor's and Fitch. The U.S. Securities and Exchange Commission has refused to recognize Dagong's ratings because of the commission's inability to supervise the Beijing-based agency.
Pinyin
Pinyin is the official system to transcribe Chinese characters into the Roman alphabet in China, Malaysia, Singapore and Taiwan. It is also often used to teach Mandarin Chinese and spell Chinese names in foreign publications and used as an input method to enter Chinese characters into...
: Dàgōng Guójì Zīxìn Pínggū Yǒuxiàn Gōngsī) is a credit rating agency
Credit rating agency
A Credit rating agency is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves...
based in China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
. It is one of the few notable non-US based credit rating agencies.
Dagong has given the US debt a lower credit rating (A+ since November 2010 and A since August 2011) than that given by the three traditional rating agencies Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
, Standard and Poor's and Fitch. The U.S. Securities and Exchange Commission has refused to recognize Dagong's ratings because of the commission's inability to supervise the Beijing-based agency.
Long-term credit ratings
Dagong rates borrowers on a scale from AAA to C. Intermediate ratings are offered at each level between AA and CC (e.g., AA+, AA, and AA-).- AAA: Highest credit rating
- AA: Very High credit rating
- A: High credit rating
- BBB: Medium credit rating
- BB: Low medium credit rating
- B: Relatively low credit rating
- CCC: Low credit rating
- CC: Very low credit rating.
- C: Lowest credit rating. Issuer is unable to meet financial obligations and possibly in the process of bankruptcy.
Short-term credit ratings
Debt with maturity dates of 1 year or shorter are rated on a scale from A-1 to D. No intermediate ratings (e.g., B+ and B-) are used.- A-1: Highest credit rating
- A-2: Good credit rating
- A-3: Fair credit rating
- B: Significant speculative credit rating
- C: High default risk credit rating
- D: Default