Dagong refutes claims of AAA 'generosity'

BEIJING - Dagong Global Credit Rating Co Ltd on Friday denied accusations of "generosity" in the ratings it has awarded to domestic companies and some local government bonds, which many market experts felt were high risk.

Some media outlets pointed out that Dagong has awarded the highest rating (AAA) 156 times in the past year. Most of those AAA ratings were awarded to bonds issued by State-owned enterprises or local government financing vehicles which many experts consider to be a potential default risk.

However, the agency claims that the number is misleading because "one company may have issued multiple debts within a year", and 156 was the total number of ratings given to all bond issuances by AAA-rated companies.