Dagong has seen its market share halve in six years to 20 percent due to “irresponsible” competitors, Chairman Guan Jianzhong said in a March 24 interview in Beijing. Some companies are compromising evaluations to win business and a lack of defaults has made it hard to gauge the assessors’ trustworthiness, according to Dagong, China Lianhe Credit Rating Co. and China Chengxin International Credit Co.
“The ratings are creating credit risks and blindfolding people, instead of revealing the risks,” Guan said. “Ratings that are only labels and can’t disclose risk will be a huge latent danger to China’s economy.”
At least they’re honest about it: Read more