New Joint U.S.-Sino-Russo Ratings Agency: Universal Credit

I imagine most people here think the big three ratings agencies are not only worthless but detrimental to the markets, but don't worry, because now a triumvirate is forming between the U.S.'s Egan Jones and agencies from China (Dagong Global Credit) and Russia (RusRating). The joint agency will be headquartered in Hong Kong.

Article here: http://www.chinadaily.com.cn/business/2012-10/25/…

Egan Jones previously came under some fire from the SEC for overstating their experience and the number of companies they cover and have also offered some more contrarian views with its rating on U.S. government credit, recently downgrading upon news of QE3. I would say Egan Jones is the most credible of those forming the triumvirate by virtue of it not being Chinese or Russian, but it is probably a puppet of the other two, being used in an effort to challenge U.S. global financial hegemony.

Thoughts? No one cares?

4 Comments
 

No one cares because nobody uses Egan Jones' ratings. Post-crisis, S&P shed some market share and Fitch picked some up, and that's about all that changed. I also think your assessment of the Chinese and Russian firms using Egan Jones as a "puppet" is at the very least a stretch, and generally comes across as unfounded.

"There are three ways to make a living in this business: be first, be smarter, or cheat."
 

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