India pushes for BRICS rating agency

S&P, Moody's and Fitch are the three rating agencies that hold over 90 per cent of the sovereign ratings market now.

Prime Minister Narendra Modi has called for setting up of a BRICS credit rating agency, to counter western rating institutions and also meet the financial needs of sovereign and corporate entities in developing nations.
 
India was the first among BRICS nations to unleash the idea of having such an agency.
 
S&P, Moody's and Fitch are the three rating agencies that hold over 90 per cent of the sovereign ratings market now.
 
The motive behind creating BRICS rating agency is to challenge the dominance of these western credit rating agencies. 
 
"In order to further bridge the gap in the global financial architecture, we agreed to fast track the setting up of a BRICS Rating Agency,” Modi said at the Goa Summit last year.
 
India has not been happy with the western rating agencies. 
 
In May, India’s chief economic advisor Arvind Subramanian said western rating agencies are unfair towards India. 
 
The methodology of the ratings firms was “one of the most egregious examples of compromised analysis”, he said.
 
Source: Media reports

Event date: 
Tuesday, September 5, 2017

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