Could Moody's, Standard & Poor's, and Fitch Ratings finally get permission to rate domestic corporate bonds?
The announcement that China's corporate bond market was getting a new policeman was cause for cheer among the foreign credit ratings agencies. Now run by the progressive securities regulator as opposed to the conservative state planner, this anemic area of the capital markets could expect to get a shot in the arm.
The more firms issuing debt, the greater the demand for those who assess whether this debt is worth buying. Could it mean that the likes of Moody's, Standard & Poor's (S&P) and Fitch Ratings were finally going to get permission to rate domestic corporate bonds?
Unfortunately, it did not