China's largest rating agency rebuts S&P's accusation of populism

15:01, August 05, 2010      

Email | Print | Subscribe | Comments | Forum 

The head of China's largest domestic rating agency denied criticism by its western counterparts' of practicing populism, while reaffirming the agency's principals of independence, objectivity and fairness.

Based on long-term research on the credit economy and rules and experience of rating standards, the Dagong Global Credit Rating Co. Ltd provides impartial rating information in the post-crisis era, which has warded off swinging to domestic interests or so-called "populism", Guan Jianzhong, chairman of the Dagong Global Credit Rating told Xinhua in an exclusive interview on Wednesday.

In Tuesday's interview with the Financial Times, Harold "Terry" McGraw III, chairman and chief executive of the U.S.-based McGraw-Hill Companies, which owns Standard &Poor's, suggested that the Chinese rating agency follow a "populist mood", and lack transparency in publishing its policies, procedures and putting out assumptions and criteria.

Guan said the accusation is irresponsible for the western rating firm to label a new-born international rating agency as "populist", instead of carrying out self-criticism on its own highly politicized rating standards.

"Standard &Poor's failed to identify the debtor nations' currency depreciation, which infringed on the interests of the creditor nations, as the sovereign debt default. Such practice is the fundamental cause weighing on the instability of the international credit system," said Guan.

Guan also rejected reports that he suggested the government should have more control in credit rating decisions.

"It's a total sheer absurdity. I'v never made such a suggestion," he said.

"Dagong has been maintaining its independent, impartial and fair position, however, the independence of some U.S. rating firms needs to be questioned due to the close relationship between the shareholders and their clients,"said Guan, adding billionaire investor Warren Buffett is the largest shareholder in Moody's.

【1】 【2】


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
Hot Forum Discussion