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Russia, China, US to set up new independent rating agency

Universal Credit Rating Group will not represent any country and will be financed by private institutions’ investments

BEIJING, October 24 (Itar-Tass) — Russia, China and the United States will jointly create a new independent rating agency to provide fair and true information about global economic processes, China’s Xinhua news agency reported on Wednesday.

The U.S.-based rating agencies Standard&Poor’s, Moody’s and Fitch failed to issue a warning of the upcoming financial crisis and even helped to aggravate it, Guan Jianzhong, president of China’s Dagong Global Credit Rating Co., said.

Excessive optimism of the U.S. rating agencies led to the financial crisis and the current international rating system can no longer meet investors’ demand, Sean Egan, president of Egan-Jones Ratings Company, said.

Within six months China’s Dagong Global Credit Rating Co., Russia’s RusRating and the United States’ Egan-Jones Ratings Company will set up Universal Credit Rating Group. It will be headquartered in Hong Kong.

The group will not represent any country and will be financed by private institutions’ investments.