News Group
Ireland rated BBB by Chinese credit rating firm
Issue Time:2010-12-07

A Beijing-based credit rating agency today issued the sovereign credit ratings for Ireland and four other countries, assigning Ireland the BBB grade for both local currency and foreign currency with a stable outlook.

The other four countries rated are Finland, Uruguay, Kenya and Sudan. Dagong Global Credit Rating Co., Ltd., the agency which released the ratings, rated Finland's local and foreign currency grade AAA with a negative outlook. Uruguay's local and foreign currency grade was rated BB+. Kenya's local and foreign currency grade was rated B. Uruguay's local and foreign currency grade was rated C. Uruguay, Kenya and Sudan's currency outlook were rated stable.

Dagong's rating for Ireland was much lower than Moody's, Standard & Poor and Fitch's AA or A. Its ratings for the other four countries are similar to those of the U.S. rating agencies.

"Dagong's judgment was based on Ireland's rising debt burden and other factors that affect repayment risks," said an executive with the Chinese rating firm.

Dagong is the world's first rating agency that rated Sudan. According to the company, more "forgotten countries" will be rated.

The company has issued credit ratings for 59 countries since July 2010. Its ratings have showed great disparity with the world's major credit rating firms, including Moody's, Standard & Poor and Fitch.