Chinese rating agency strips Western nations of AAA status

[Poboy]

Source: Telegraph UK

Chinese rating agency strips Western nations of AAA status
China's leading credit rating agency has stripped America, Britain, Germany and France of their AAA ratings, accusing Anglo-Saxon competitors of ideological bias in favour of the West.

By Ambrose Evans-Pritchard, International Business Editor
Published: 9:17PM BST 12 Jul 2010

Dagong Global Credit Rating Co used its first foray into sovereign debt to paint a revolutionary picture of creditworthiness around the world, giving much greater weight to "wealth creating capacity" and foreign reserves than Fitch, Standard & Poor's, or Moody's.
The US falls to AA, while Britain and France slither down to AA-. Belgium, Spain, Italy are ranked at A- along with Malaysia.

Meanwhile, China rises to AA+ with Germany, the Netherlands and Canada, reflecting its €2.4 trillion (£2 trillion) reserves and a blistering growth rate of 8pc to 10pc a year.
Dominique Strauss-Kahn, chief of the International Monetary Fund, agreed on Monday that the rising East is a transforming global force. "Asia's time has come," he said.
The IMF expects Asia to grow by 7.7pc in 2010, vastly outpacing the eurozone at 1pc and the US at 3.3pc. Emerging nations hold 75pc of the world's $8.4 trillion (£5.6 trillion) of reserves.
Dagong rates Norway, Denmark, Switzerland, and Singapore at AAA, along with the commodity twins Australia and New Zealand.

Read more: http://www.telegraph.co.uk/finance/china-business/7886077/Chinese-rating-agency-strips-Western-nations-of-AAA-status.html

[DJ13]

1. Dagong Global Credit Rating Co

Who?

[KakistocracyHater]

2. its expected when CEOs chose to outsource to China & other Asian nations

how soon til China hires debt collectors in America & Xe as the support?

[Skittles]

3. fuck China

[totodeinhere]

4. Oh yea, that's certainly going to help, especially since they are holding so much of our debt. n/t

[Skittles]

5. they can still fuck themselves

[yava]

10. OK dear Skittles, so who also would you like toi see go

fuck themselves?
Let me guess: Russia, Venezuela, Mexico, Brazil, Cuba, Iran, India, Europe EU, Japan?
Any others to add to your list?

And let me guess who are your good guys:
UK (the Brits), Poland, Georgia, Israel, anyone else?

[proteus_lives]

9. That's their weight to bear.

They live in fear of the U.S. defaulting. We default and their economy goes boom.

[bossy22]

6. anyone surprised?

that a quasi-government controlled rating agency from china made this anouncement.

i hate to say it but their opinion is almost meaningless when it comes to the world markets. I think its also telling that when i showed my friend who works in finance this article he also said "Who?"

[dkf]

7. Maybe that means China will demand higher rates or will invest elsewhere.

In that case it is a good idea to lower the amount we need to borrow.

[Socal31]

8. The worst thing China can do to themselves is take steps to devalue the USD.