Chinese court punishes ratings agency after bond default
Dagong ordered to pay a portion of bondholders’ debt claims amid Beijing’s drive to toughen up on due diligence
04 January 2021 - 08:31
A Chinese court has ruled that a local ratings firm should help compensate some creditors for a construction firm’s 1.4-billion yuan ($216m) 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 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, according to a ruling by Hangzhou Intermediate People’s Court dated Thursday and seen by Bloomberg News...
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