Leading Chinese credit ratings firm Dagong Global Credit Rating has been accused of routinely pressuring companies to buy a $1.4 million piece of software in order to receive a higher credit rating, Caixin reports.
The allegations have emerged in the wake of Dagong being banned from taking on new securities rating business for 12 months by China’s securities regulator and a leading industry group.
Dagong forced at least 26 bond issuers to buy its consulting software before increasing the companies’ ratings, according to Caixin. Several sources described the software as being of little use to their business.