7/27/2010

Guan Jianzhong, chairman at Dagong Global Credit Rating, said borrowers backed by Chinese local governments shop around to get the best rating possible from domestic credit rating agencies. The result is that ratings given to the yuan-denominated bonds don't reflect investor risks. "Whoever gives them a better rating gets the business," he said. "Local governments are very powerful. The current system doesn't reflect all the risks."

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