Mainland credit rating firm chair says some China debt rankings "useless"

Dagong Global Credit Rating Group Chairman Guan Jianzhong has declared some of China’s debt rankings “useless,” Bloomberg reported. “The ratings are creating credit risks and blindfolding people, instead of revealing the risks,” Guan said. “Ratings that are only labels and can’t disclose risk will be a huge latent danger to China’s economy.” Guan said Dagong had seen its market share halve in six years to 20% due to “irresponsible” competitors. Some companies are compromising evaluations to win business and a lack of defaults has made it hard to gauge the assessors’ trustworthiness, according to Dagong, China Lianhe Credit Rating Co. and China Chengxin International Credit Co.