A Chinese court ruled that a local ratings firm should help compensate some creditors for a construction firm’s 1.4 billion yuan ($216 million) bond defaults three years ago, a first in the country as Beijing raises pressure on agencies to improve their due diligence.
Dagong Global Credit Rating Co. is responsible for repaying up to 10% of at least 494 million yuan of combined debt claims to more than 400 individual bondholders of Wuyang Construction Group Co., according to a ruling by Hangzhou Intermediate People’s Court dated Thursday and seen by Bloomberg News.
