By Wei Tian, China Daily, 2011-11-09 —
BEIJING – The Chinese rating agency Dagong Global Credit Rating Co has secured its first sovereign customer, the Republic of Belarus. The Eastern European country is hoping that the rating provided by Dagong will lure more Chinese investors.
A contract to entrust the agency with a thorough sovereign credit rating service for the country was signed in Beijing on Tuesday, although the size of the contract remains confidential.
The rating will be the first to be conducted by a non-Western rating agency, and signals another step in Dagong’s move toward the global ratings market.
The agency’s report will be completed within 45 working days and further updates will be issued over time.
"We hope the rating result will better facilitate an exchange of investment between the two countries, and better reflect the economic climate and developments in Belarus for investors from China and globally," said Viktor Burya, the ambassador to China.
Earlier this year, the country’s sovereign credit rating was downgraded by two major agencies, Moody’s Investors Service and Standard & Poor’s (S&P), citing a reduction in the amount of foreign aid the country received and devaluation of its currency as reasons for the move.
"We’re hoping for a different result from Dagong, but we don’t want to push anyone for any results," said Kiryl Rudy, counselor of Finance and Investment at the Belarusian embassy in China.
Rudy said Dagong’s evaluation may emphasize the country’s advantages and provide potential investors with a clearer picture of its finances. Dagong will also be in a position to point out any disadvantages and help the country to improve its investment climate.
To heighten its international profile, Dagong has now voluntarily compiled sovereign credit ratings for 68 countries. Its results are very different from those of the "Big Three", Moody’s, S&P, and Fitch Ratings.
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