Three rating agencies from China, the United States andRussia will jointly launch a new credit rating company to rival current industry leadersand promote independence.It was announced on Wednesday that the Universal Credit Rating Group will be established by China's Dagong Global Credit Rating Co., Ltd., the U.S.-based Egan-Jones Ratings Company, and Russia's RusRating. The headquarters will be set up inHong Kong within six months, the companies said in a statement.The group will be invested by private institutions without conflicts of interests with itscredit ratings and will not representany country or interest group, the statement said.Guan Jianzhong, president of Dagong Global Credit Rating Co., Ltd., urged anoverhaul of the current international credit rating system, which he criticized. "As the main providers of rating information that global capital flow relies on, the threemajor rating agencies in the U.S.
failed to ring the alarm bell for the financial crisis andeven helped aggravate the crisis," said Guan. The U.S.-based "Big Three" global credit rating agencies -- Standard and Poor's,Moody's, and Fitch Ratings have come under fire for their credibility during the globalfinancial crisis.
Sean Egan, president of EganJones Ratings Company, said overly optimistic creditratings led to the financial crisis and the current international rating system can nolonger meet investors' demand.Guan said the new rating group will provide fair and true information about debtors, make a new international standard for credit rating and promote an independent globalrating regulatory system.