October 1, 2010 (Chinavestor) Dagong Global Credit Rating Co., the privately held Chinese ratings agency, still wants to enter the U.S. market despite having its application to do so rejected by the Securities and Exchange Commission (SEC). Dagong is urging China’s securities regulator to talk to the U.S. government and enable the company to comply with U.S. laws that require direct access to its books, according to Bloomberg News.
International debt ratings agencies are approved to operate in the U.S. and there are two Japanese firms and one Canadian agency already doing so. Dagong submitted its application in December and the SEC rejected it earlier this month. The SEC rejected Dagong's application partially because it couldn’t reliably ensure the Beijing company would comply with U.S. reporting rules, which include the ability to carry out on-site inspections, Bloomberg reported.
Dagong, which is looking for an international partner, said it would offer another view on credit risk. The company is looking to open an office in Hong Kong next year to rate yuan-denominated debt issued there.