Chinese Rating Agency Grades U.S. Double-A

Monday, 26 Jul 2010 02:50 PM

By Dan Weil

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
While the United States has retained its triple-A credit rating with the three major U.S. rating agencies — S&P, Moody’s and Fitch — a Chinese rating agency puts it at double-A

Dagong Global Credit Rating Co. gives the double-A stamp to the United States, China, Canada, the Netherlands, Germany, Saudi Arabia, France, Britain, South Korea, and Japan.

In the United States, Canada and Europe, “Because the core factors are already weak, their fiscal position deteriorated significantly under the financial crisis,” Dagong wrote in a report.

“All of them have fiscal pressures, but the advantages of a comprehensive institutional system will help them gain the room for adjusting finance and debt.”

Dagong gives triple-A ratings to Norway, Australia, Denmark, Luxembourg, Switzerland, Singapore, and New Zealand.

“AAA countries have strong performance on every core factor and have no defect on any factor, which can assure their solvency in any foreseeable circumstances.”

Some investors are pleased to see another rating agency emerge.

"It is not surprising to see new rating agencies start up to provide information and analysis to investors," Malay Bansal, a managing director at New Oak Capital, told Fortune.com. "The more opinions, the better."

Dagong isn’t the only one worried about debt in the United States and Europe.

In a recent Financial Times/Harris opinion poll, 46 percent of Americans said the government is likely to default on its debt, and 53 percent of French respondents felt the same way about their country’s debt.


© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved