Historical background: Dagong distilled its principles and methodology for credit rating from the painful lessons of the unprecedented global financial crisis caused, to a great extent, by the error of the traditional credit rating practices.
It is Dagong’s conviction that to seek more secure development, the world needs new theories and new methods in credit rating. The extensive use of credit, in production and in consumption, has spread credit relations across society, and made them the very foundation of the modern economy. How credit rating is conducted, especially its theory and methodology, affects the stability of this foundation. Under such circumstances, a reliable credit rating service can only be possible under a theory that can fully reveal the nature of the all-round risk of a society’s credit relations. The financial crisis discredited the traditional credit rating system by exposing the absence of a sound theoretic base, inability to reveal all risk factors, excessive influence of ideology, and not fully integrated use of indexes. Its fundamental flaw is a lack of theory to help recognize and explain the risks – where they would exist and how they would evolve. Inevitably, the information generated by this credit rating system is mistaken and the credit relations built on such rating method cannot but result in a financial crisis. From general theory to methodology, then from individual credit rating reports to society-wide credit relations — this is how an economy works and seeks its secure development. The entire world, since the 2008 crisis, has been anxiously looking forward to a new credit rating theory and methodology.
Dagong Global Credit Rating Group takes it as its mission to contribute to the understanding of credit and economy, and to be a trailblazer in the related theoretical fields. It aspires to earn its influence by sharing its wisdom with the world, and grow into an internationally renowned Chinese brand. Dagong is a firm believer in the competitiveness in ideas. It is making a persistent effort to integrate independent thinking and innovative research into its service, based on its experience of more than 20 years as a credit rating practitioner and as a thought leader in the industry. The rising criticism about the flaws in the traditional credit rating practice has lent an important opportunity to Dagong to gain influence in the world with its new theory and methodology.