Dagong Global Credit Rating,one of China’s largest debt ratings agencies, has been ordered to rectify its operations after allegedly failing to adequately scrutinize or inspect the businesses it was evaluating, earning its second official sanction in a month, reported Caixin.
The Beijing-based company had not conducted the necessary analysis of the major factors impacting solvency of some debt issuers and failed to carry out onsite inspections or interviews in accordance with the regulations when evaluating credit risks, according to a statement released Friday by the local branch of the China Securities Regulatory Commission (CSRC).
The company was also found to have adjusted its ratings models without giving sufficient reasons, it said.
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