Founded in 1994, Dagong Global Credit Rating Co., Ltd. (hereinafter referred to as Dagong), is the only national credit rating agency that obtains the joint approval of the People’s Bank of China and the State Economic and Trade Commission (former department of the State Council). Dagong holds all the qualifications for credit rating issued by the authority and is capable to perform credit rating to all debt instruments and entities of participants in Chinese capital market except national debt. After more than 20 years’ development, Dagong has become the biggest national brand rating agency in China, with strong research capacity, high credibility and international influence.
As the founder of new international credit rating standard, Dagong is the first non-western rating agency to provide the world with national credit risk information. Moreover, Dagong is the rating agency that recommended by the Ministry of Finance to participate in the building of Asian bond market. It is the representative of Chinese credit rating agencies that engage in the international credit rating system reform and establish voice in the international rating.
Dagong’s methodology exerts significant influence in of the international credit rating sector. Dagong’s rating methodology is based on Dagon’s credit rating theories. Different from the western rating methodology, which centers on default rate and only emphasizes validating instead of warning, and also distinguished from all the other rating methods, Dagong’s rating methodology measures the degree of issuer’s debt repayment safety and applies the deviation of issuer’s debt repayment source against its wealth creation capability, which reveals the issuer’s real risk, on the basis of complete and rigorous inner logic as well as credit risk warning capability.
As the founder of credit rating standards on China’s business sector, regions and sovereign credit, Dagong conduct independent researches on formulating the rating standard. It leads and promotes the innovative design and application of China’s debt instruments. Dagong has rated on over 10,000 enterprises in 30 provinces and cities in 70 sectors, with over one trillion of bond financing.
As the largest and most standardized rating agency in China, Dagong now has a staff of over 400 people, with nine regional center, three subsidiaries, and 30 branches. Dagong has established Europe and Hong Kong subsidiaries, with over 10 subsidiaries under establishment process, which shows Dagong’s globalization strategy.