SEC denies Dagong's US bid

Updated: 2010-09-25 15:40
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The US Securities and Exchange Commission (SEC) refused to allow Dagong Global Credit Rating Co, one of China's credit rating and risk analysis agency companies, to become a Nationally Recognized Statistical Rating Organization in the US, Bloomberg reported.

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The SEC denied the company's December application partly because the SEC was unsure if Dagong could comply with the US rules.

Earlier media reports said the US rejected Dagong in April as Dagong had no branches in the US, and they did not rate any US companies or have subscribers in the country. Moreover, SEC officials were unsure if Dagong could comply with the local exchange acts.

Dagong released the Sovereign Credit Risk Report of 2010 containing the ratings for the first batch of 50 countries in July. The result had a 54 percent difference from the ratings by Moody's, Standard & Poors and Fitch (the three most notable counterparts in sovereign credit ratings), according to earlier reports.