ID :
196649
Sat, 07/23/2011 - 07:44
Auther :
Shortlink :
https://oananews.org//node/196649
The shortlink copeid
ASIA SHOULD HAVE AT LEAST ONE RATING AGENCY
From Mohd Iswandi Kasan Anuar
BEIJING, July 23 (Bernama) -- Asia should have at least one rating agency to provide the regional perspective on credit standings given that global rating consensus has, for far too long, been monopolised by Western institutions.
CIMB Group's chief executive officer, Nazir Razak, said the establishment of an Asian rating agency to stand shoulder to shoulder with Western rating agencies could provide a different viewpoints and rating methodologies.
"A major impediment to intra-Asian investment flow is the lack of a strong Asian voice in credit ratings," he told reporters after CIMB Bank’s inaugural rating by China's leading credit rating agency, Dagong Global Credit Rating Co, here Friday.
On the Standard & Poor's ratings, Nazir said despite the recent wave of downgrades across the West, he was puzzled how Spain (AA) was still rated higher than China (AA-) and Ireland (BBB+) higher than India (BB.
"How is China, with over US$3 trillion in foreign exchange reserves and only US$27 billion in foreign currencies sovereign debt more likely to default than Spain, which has US$13 billion in reserves and US$1 trillion in debt?" he asked.
He said the implications of the present-day rating disadvantages for Asia were far-reaching -- not only were sovereign bond issuances affected but their corporates would suffer too.
"The unfair perception of Asian debt, institutionalised by our international ratings, drives investors to look elsewhere for higher-rated investments.
"I have long advocated the need for an Asian-owned and managed rating agency. Dagong certainly has the foundation to become Asia's leader in this field," he said.
Founded in 1994, Dagong is the first non-Western credit rating agency that provides the world with soverign credit risk information.
-- BERNAMA
BEIJING, July 23 (Bernama) -- Asia should have at least one rating agency to provide the regional perspective on credit standings given that global rating consensus has, for far too long, been monopolised by Western institutions.
CIMB Group's chief executive officer, Nazir Razak, said the establishment of an Asian rating agency to stand shoulder to shoulder with Western rating agencies could provide a different viewpoints and rating methodologies.
"A major impediment to intra-Asian investment flow is the lack of a strong Asian voice in credit ratings," he told reporters after CIMB Bank’s inaugural rating by China's leading credit rating agency, Dagong Global Credit Rating Co, here Friday.
On the Standard & Poor's ratings, Nazir said despite the recent wave of downgrades across the West, he was puzzled how Spain (AA) was still rated higher than China (AA-) and Ireland (BBB+) higher than India (BB.
"How is China, with over US$3 trillion in foreign exchange reserves and only US$27 billion in foreign currencies sovereign debt more likely to default than Spain, which has US$13 billion in reserves and US$1 trillion in debt?" he asked.
He said the implications of the present-day rating disadvantages for Asia were far-reaching -- not only were sovereign bond issuances affected but their corporates would suffer too.
"The unfair perception of Asian debt, institutionalised by our international ratings, drives investors to look elsewhere for higher-rated investments.
"I have long advocated the need for an Asian-owned and managed rating agency. Dagong certainly has the foundation to become Asia's leader in this field," he said.
Founded in 1994, Dagong is the first non-Western credit rating agency that provides the world with soverign credit risk information.
-- BERNAMA
