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FINANCE

Industry Body Faults Domestic Ratings Agencies

By Aries Poon and Han Yi
An audit by the National Association of Financial Market Institutional Investors found that China’s major credit ratings agencies did not properly engage with companies throughout the rating process. Problems included failing to give companies sufficient time to answer questions or offer feedback. Photo: Visual China
An audit by the National Association of Financial Market Institutional Investors found that China’s major credit ratings agencies did not properly engage with companies throughout the rating process. Problems included failing to give companies sufficient time to answer questions or offer feedback. Photo: Visual China

While China is opening its local interbank-bond ratings to global agencies, domestic agencies still haven’t lived up to the standard, a self-regulatory body said.

An audit of all five domestic agencies that assess credit risks of interbank bonds, conducted by the National Association of Financial Market Institutional Investors (NAFMII) from July through September, found that the ratings reports of these agencies failed to adequately address major credit risks and had calculation errors, the association said in a statement Monday.

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