First Chinese Rating of Global Sovereign Credit - Guess what's the rank of U.S.?

Dagong Global Credit Rating released sovereign credit ratings of 50 countries, and according to China Daily, it's "the first non-Western rating agency to assess the world's sovereign credit and risks". It claims to be "privately owned" and "pledges to make its judgments impartially". The report rated U.S. government debt AA with a negative outlook, and U.K. an AA-, while China got an AA+.

A challenge to the established global credit rating system, or a long-needed alternative from a non-western entity? Dagong seems to believe that they are in the role of a hero.

Dagong's chairman, Guan Jianzhong, said the current Western-led rating system is to blame for the global crisis and Europe's debt woes. He said it "provides the wrong credit-rating information" and fails to reflect changing conditions.

How much do the west make of this report? What will its impact be, economic or otherwise? It's too soon to know and I awaits for insights from economists and analysts. One of the first reactions come from The Money Game (Business Insider), arguing that this is a good marketing strategy. The complete credit rating report is available in Chinese here. And I translated it into English, see below; or visit it on a webpage here.

Dagong 50-Country Sovereign Credit Rating

	Number	Country	National Currency Rating	National Currency Outlook	Foreign Currency Rating	Foreign Currency Outlook

1 Norway AAA Stable AAA Stable 2 Denmark AAA Stable AAA Stable 3 Luxembourg AAA Stable AAA Stable 4 Switzerland AAA Stable AAA Stable 5 Singapore AAA Stable AAA Stable 6 Australia AAA Stable AA+ Stable 7 New Zealand AAA Stable AA+ Stable 8 Canada AA+ Stable AA+ Stable 9 Netherland AA+ Stable AA+ Stable 10 China AA+ Stable AAA Stable 11 Germany AA+ Stable AA+ Stable 12 Saudi Arabia AA Stable AA Stable 13 United States AA Negative AA Negative 14 South Korea AA- Stable AA Stable 15 Japan AA- Negative AA Stable 16 United Kingdom AA- Negative AA- Negative 17 France AA- Negative AA- Negative 18 Belgium A+ Stable A+ Stable 19 Chile A+ Stable A+ Stable 20 South Africa A Stable A Stable

21 Malaysia A Stable A Stable 22 Estonia A Stable A Stable 23 Russia A Stable A Stable 24 Poland A Stable A- Stable 25 Spain A Negative A Negative 26 Israel A- Stable A- Stable 27 Brizil A- Stable A- Stable 28 Italy A- Negative A- Negative 29 Portugal A- Negative A- Negative 30 India BBB Stable BBB Stable 31 Thailan BBB Stable BBB Stable 32 Mexico BBB Stable BBB Stable 33 Kazakhstan BBB Stable BBB- Stable 34 Hungary BBB Negative BBB- Negative 35 UAE BBB Negative BBB Negative 36 Indonesia BBB- Stable BBB- Stable 37 Egypt BB+ Stable BBB- Stable 38 Venezuela BB+ Stable BB+ Stable 39 Nigeria BB+ Stable BB+ Stable 40 Romania BB+ Negative BB Negative

41 Greece BB Stable BB Stable 42 Turkey BB Stable BB- Stable 43 Iceland BB Negative BB- Negative 44 Vietnam BB- Stable BB- Stable 45 Mongolia B+ Stable B+ Stable 46 Phillipins B+ Stable B+ Stable 47 Argentina B Stable B Stable 48 Ukrain B Stable B- Stable 49 Pakistan B- Negative B- Negative 50 Ecuador CCC Stable CCC Stable