Saying the economy of China and their sound balance of payments has helped them perform strongly, Moody's (NYSE:MCO) upgraded their rating on the country today from A1 to Aa3.
Moody's senior vice president Tom Byrne said, "The record of the past year demonstrates that China's policy response to the 2008 crisis has been effective. Real GDP growth initially rebounded rapidly in response to the stimulus measures, and is moderating to a more sustainable rate of growth, which seems likely to be around 9%-10% this year, and perhaps 8%-9% in 2011."
It's interesting to see Moody's, which is based in the United States, upgrade China almost immediately after China's Dagong rating agency lowered the U.S. credit rating from AA to A+ after the Federal Reserve announced they're going to implement another round of quantitative easing which Dagong said would reduce the ability of the U.S. to repay their debt.
Showing posts with label Dagong Global Credit Rating. Show all posts
Showing posts with label Dagong Global Credit Rating. Show all posts
Thursday, November 11, 2010
Tuesday, July 13, 2010
Rating Agency From China Downgrades America, Western Nations
In the opinion of China-based Dagong Global Credit Rating Co, Western nations, including the United States, are no longer worthy of their prior AAA ratings, and have all been downgraded as a result.
Major Western countries like the U.S., Germany, Britain and France were downgraded from AAA to lower levels.
The U.S. was dropped to AA, while Britain and France were cut to AA-. Germany was the best of all of them (larger countries), enjoying a AA+ rating from Dagong, the top credit rating agency in China.
Resource-rich countries like Australia and New Zealand remained at AAA, while Canada was listed at AA+. Others retaining AAA credit ratings were Denmark, Norway and Switzerland.
Economies like Spain, Italy and Belgium were downgraded to A- by Dagong.
"The reason for the global financial crisis and debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor's repayment ability," said Dagong chairman Guan Jianzhong.
Dagong states it has a goal of being a counter-weight to agencies in the West, and want to "correct the defects" of the current system.
Major Western countries like the U.S., Germany, Britain and France were downgraded from AAA to lower levels.
The U.S. was dropped to AA, while Britain and France were cut to AA-. Germany was the best of all of them (larger countries), enjoying a AA+ rating from Dagong, the top credit rating agency in China.
Resource-rich countries like Australia and New Zealand remained at AAA, while Canada was listed at AA+. Others retaining AAA credit ratings were Denmark, Norway and Switzerland.
Economies like Spain, Italy and Belgium were downgraded to A- by Dagong.
"The reason for the global financial crisis and debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor's repayment ability," said Dagong chairman Guan Jianzhong.
Dagong states it has a goal of being a counter-weight to agencies in the West, and want to "correct the defects" of the current system.
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