2016年CRI Credit Rating, the Next Market China Competes for Say

 

In its latest credit rating on China's sovereign debt, US Standard & Poor's Ratings Services lowered its outlook for the country's creditworthiness to negative from stable. It follows a similar move by another American ratings agency Moody's.

A lower credit rating means higher borrowing costs because the borrower is deemed to carry a higher risk of default.

"It's hard to imagine that China, a leading creditor¹ nation and a major capital exporter, is still trying to ensure the security of its assets based on the ratings made by its debtor²."

Guan Jianzhong is Chairman of the Beijing-based Dagong Global Credit Rating.

"If we blindly worship or follow the so-called authoritative³ Western rating agencies, it's virtually embracing their ratings at the expense of the losses in the value of our assets. That's pathetic."

Guan's view is shared by former French Prime Minster, Dominique de Villepin, who made the comment at a recent forum⁴ on credit rating and investment.

"There's growing distrusts towards the rating agencies… The first one is the hegemony of the western finance and rating agencies. It means a lack of diversity and reliability⁵. We see that the US banking⁶ sector⁷ had a big responsibility in the 2008 turmoil⁸. We also see there is the monopoly of the 'big three' that failed to avoid the crisis and even made it worse."

But to break the monopoly is not easy.

According to reports, S&P, Moody's, and Fitch, all headquartered in the U.S., together control 95 percent of the world's ratings market.

Hans-Peter Egler, CEO of Switzerland-based Global Infrastructure⁹ Basel, or GIB, says innovation is the way to change the old order.

"You shouldn't think and do the same as everybody else because then you are irrelevant¹⁰. As long as you are able to bring a new methodology to the table, and prove it's also a reliable methodology, then you'll be able to occupy a market's base. We take this momentum¹¹ where there are new markets are establishing themselves are trying to have new approaches particularly in those markets which may spill over then to other markets."

GIB, together with Dagong Global Credit Rating, has just launched a global infrastructure credit rating methodology, which the two companies say is more comprehensive than the existing methodologies, monitoring a project from the very beginning of its design rather than merely focus on its operation.

For CRI, I'm Tu Yun.

1 creditor   

n.债仅人，债主，贷方

参考例句：

• The boss assigned his car to his creditor.那工头把自己的小汽车让与了债权人。
• I had to run away from my creditor whom I made a usurious loan.我借了高利贷不得不四处躲债。

2 debtor   

n.借方，债务人

参考例句：

• He crowded the debtor for payment.他催逼负债人还债。
• The court granted me a lien on my debtor's property.法庭授予我对我债务人财产的留置权。

3 authoritative   

adj.有权威的，可相信的；命令式的；官方的

参考例句：

• David speaks in an authoritative tone.大卫以命令的口吻说话。
• Her smile was warm but authoritative.她的笑容很和蔼，同时又透着威严。

4 forum   

n.论坛，讨论会

参考例句：

• They're holding a forum on new ways of teaching history.他们正在举行历史教学讨论会。
• The organisation would provide a forum where problems could be discussed.这个组织将提供一个可以讨论问题的平台。

5 reliability   

n.可靠性，确实性

参考例句：

• We mustn't presume too much upon the reliability of such sources.我们不应过分指望这类消息来源的可靠性。
• I can assure you of the reliability of the information.我向你保证这消息可靠。

6 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

7 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

8 turmoil   

n.骚乱，混乱，动乱

参考例句：

• His mind was in such a turmoil that he couldn't get to sleep.内心的纷扰使他无法入睡。
• The robbery put the village in a turmoil.抢劫使全村陷入混乱。

9 infrastructure   

n.下部构造，下部组织，基础结构，基础设施

参考例句：

• We should step up the development of infrastructure for research.加强科学基础设施建设。
• We should strengthen cultural infrastructure and boost various types of popular culture.加强文化基础设施建设，发展各类群众文化。

10 irrelevant   

adj.不恰当的，无关系的，不相干的

参考例句：

• That is completely irrelevant to the subject under discussion.这跟讨论的主题完全不相关。
• A question about arithmetic is irrelevant in a music lesson.在音乐课上，一个数学的问题是风马牛不相及的。

11 momentum   

n.动力，冲力，势头；动量

参考例句：

• We exploit the energy and momentum conservation laws in this way.我们就是这样利用能量和动量守恒定律的。
• The law of momentum conservation could supplant Newton's third law.动量守恒定律可以取代牛顿第三定律。