Chinese rating agency downgrades America, Britain, Germany and France from AAA

Discussion in 'Economics' started by MohdSalleh, Jul 26, 2010.

  1. Chinese rating agency strips Western nations of AAA status

    Dagong Global Credit Rating Co used its first foray into sovereign debt to paint a revolutionary picture of creditworthiness around the world, giving much greater weight to "wealth creating capacity" and foreign reserves than Fitch, Standard & Poor's, or Moody's.

    The US falls to AA, while Britain and France slither down to AA-. Belgium, Spain, Italy are ranked at A- along with Malaysia.

    Meanwhile, China rises to AA+ with Germany, the Netherlands and Canada, reflecting its €2.4 trillion (£2 trillion) reserves and a blistering growth rate of 8pc to 10pc a year.

    Dominique Strauss-Kahn, chief of the International Monetary Fund, agreed on Monday that the rising East is a transforming global force. "Asia's time has come," he said.

    The IMF expects Asia to grow by 7.7pc in 2010, vastly outpacing the eurozone at 1pc and the US at 3.3pc. Emerging nations hold 75pc of the world's $8.4 trillion (£5.6 trillion) of reserves.

    Dagong rates Norway, Denmark, Switzerland, and Singapore at AAA, along with the commodity twins Australia and New Zealand.

  2. I trust this rating agency no less than Moody's, Fitch, etc.

    If anything, they seem to be fairly accurate...
  3. Scandinavian nations are the best managed in the World, I am interested in immigrating there if I have a chance.Au/Ca have large landmass, small population and tons of goodies burred underground. :D
  4. Our (U.S.) rating agencies cannot lower our AAA rating for political reasons.

    You have to look to the Dagong ratings because it's "the only game in town" for sovereign ratings.
  5. If a Chinese ratings agency makes an upgrade or downgrade, does anybody care? :confused:
  6. If any ratings agency makes an upgrade or downgrade, does anybody care?

    Some do, but all shouldn't...