Mandarin Capital-backed Chinese credit rating JV to operate in Europe
Dagong Europe Credit Rating, a joint venture between Beijing-based Dagong Global Credit Rating and Mandarin Capital Partners, has won approval from the European Securities and Markets Authority (ESMA) to operate in Europe. It will become the first Chinese credit rating agency to build an international footprint.
Established in April 2012 in Milan, the joint venture will provide rating services to corporate and financial institutions in the EU. It applied for the rating license after the EU reinforced regulation of credit rating agencies during the global financial crisis, the company said.
Dagong Europe aims to offer an alternative to the three dominating ratings agencies, namely the US-based Moddy's, S&P and Fitch.
"They have monopolized the rating market and constantly released wrong rating information, which resulted in the twists and turns of European debt crisis... Dagong will build a more effective channel and provide a more secure and smooth path in the field of capital flow and mutual investment between two big economies of China and Europe," the company said.
Dagong Europe General Manager Mauro Alfono told Reuters that the joint venture's first research would be published by the end of the summer, with focus on corporate ratings of banks and insurers.
Incorporated in 1994, Dagong Global has also teamed up with Russian peer RusRating and Egan-Jones of the US to create the Universal Credit Rating Group. The enterprise will be formally launched in Hong Kong this month.
Mandarin Capital, a Sino-European private equity firm is nearing a first close of around EUR200 million ($263 million) on its second fund, which has a target of EUR1 billion.
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