16:46 GMT +309 December 2019
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    Chinese Rating Agency Ranks Russia at a Solid 'A', Above US

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    China’s rating agency Dagong Global Credit Rating Co. has rated Russian foreign exchange sovereign bonds at 'A', with a stable outlook, Bloomberg reported.

    Despite an economic crisis and low oil prices, Russia received the sixth-highest rating from Dagong, and was ranked above the United States.

    "Russia has been regaining the confidence of investors as oil prices stabilized, selling its first Eurobond since 2013 last month," Bloomberg reported.

    The threat of a debt crisis in Russia is "smaller and lower" than in the US, according to Guan. The government’s debt repayment ability has not been affected by the Western sanctions, he said.

    "Actually credit ratings are largely politically biased. Dagong is only considering the debt repayment capacity of the central government," Guan Jianzhong, the firm’s chairman, said during an interview in St. Petersburg, Russia.

    "In the western countries, they use the credit rating as a tool to protect their own profits, their own interests," Guan said. "And that’s why we saw in 2008 the financial crisis was partially because of a credit crisis, because the wrong credit rating was used."

    Dagong is a privately-held rating house established in 1994. The agency is not formally tied to the Chinese government, according to Bloomberg. It provides ratings for over 110 countries.

    The company plans to cooperate with Russia’s new national credit rating agency, and is preparing to open a subsidiary in the country.

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    rating agency, credit rating, economy, Dagong, China, Russia
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