“We hope that the agency will gain a leading position in the global rating market within the next five years. We’re fully aware that a globally recognized organization can never be propped up by one agency, so we will bring in more countries.”-Guan Jianzhong, CEO of Dagong Global Credit Ratings

China’s Dagong Global Credit Ratings will play a key role in the new global super-sovereign credit rating agency.

It will be established by Europe, the United States and the BRICS (Brazil, Russia, India, China and South Africa).  Its headquarters will probably be based in Europe.  Details will be finalized in Frankfurt later this year.

Initial plans include representatives from National Information & Credit Evaluation in South Korea, the Scope Group from Germany, and RusRating from Russia.

There are currently 152 rating agencies worldwide, but recent actions by the “big three” credit raters (downgrading governments, like the United States) has led many governments to decide to create one single credit rating agency.

Ahmed Sule, a strategist for Diadem Capital in United Kingdom, said any new credit rating agency would have to prove itself: “The agency would have to be independent and autonomous; this could be a challenge but the agency would have to work toward this independence if it is to be accepted by the international capital market.”

In July, a French magazine, Capital, revealed that a single European credit rating agency was in the works.