BRICS wants to set up an alternative rating agency. Why it may not work

by Dramelin 2:00 AM 0 comments

The BRICS agency is likely to be another failed rating agency project unless it can overcome these three hurdles. The idea of establishing an alternative credit rating agency led by the BRICS bloc of countries is gaining momentum. They are therefore unlikely to trust any ratings from the new BRICS rating agency with a yet to be tested rating model. Others that have been launched include:MARC of Malaysia which has been operational since 1996, but still only covers corporate ratings;The Hong Kong based Universal Credit Rating Group which was launched in 2014lRussia`s Analytical Credit Rating Agency (ACRA) which was established in 2015;the Beijing based China Chengxin Credit Rating Group, established in 1992;and Dagong Global Credit Rating established in 1994. The CARE Rating agency of India, started in April 1993, is still rating small to medium enterprises.