Dagong Global Credit Rating said it is considering legal action after the US Securities and Exchange Commission (SEC) denied its application to be an officially recognized bond rater in the US, the Wall Street Journal reported. Dagong had stated in its application that the China Securities Regulatory Commission would review and remove any state secrets from Dagong’s documents before these are submitted to the SEC. The US regulator cited that proposal in rejecting Dagong’s application. "It does not appear possible at this time for Dagong to be able to comply with the record-keeping, production and examination requirements of the federal securities laws," the SEC said in a statement. Dagong is one of China’s top three ratings agencies, along with China Chengxin International Rating and China Lianhe Credit Rating.
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