Dagong Global Credit Rating
Dagong Global Credit Rating is a credit rating agency based in China.History
The company was established in 1994, following approval by the People's Bank of China and the State Economic and Trade Division of the People's Republic of China.
In May 2009, an agreement of mutual cooperation was signed with Xinhua news agency, reported as "promoting a national credit rating system".
In June 2013, Dagong Europe Credit Rating was registered and received authorisation from the European Securities and Markets Authority as Credit Rating Agency. In the same year, it was recognised by the Joint Committee of the three European Supervisory Authorities as External Credit Assessment Institution operating in the European Union.
In July 2014, Dagong Global Credit Rating Co., Limited was granted a Type 10 License by the Securities and Futures Commission of Hong Kong.
In 2018, Dagong's operations were suspended following accusation of corruption and doctored ratings in exchange for hefty fees. In 2019, China Reform Holdings Corp. Ltd. was brought on board to help re-organise the business.Dagong rates borrowers on a scale from AAA to C. Intermediate ratings are offered at each level between AA and CC.
- 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 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
