(Bloomberg) -- S&P Global Ratings is studying a credit-ratings scale tailored for China as part of its application to secure a license to rate bonds in the country, according to a document on its website.
The New York-based firm is developing a special ratings system and methodology given the size and diversification of China’s domestic bond market, S&P said in the posting. Moody’s Investors Service has also applied for a license in China, according to a document on its website, which made no mention of using a unique ratings scale for China.
China opened the door for international ratings companies last year as a way to speed up reform and foster competition. S&P and Moody’s both set up wholly-owned units in China in June.
Fitch Ratings is also in the process of applying for a license to operate independently there and will ensure that it keep its standards consistent with international best practice, a spokesperson said this week.
S&P and Moody’s have applied to rate financial, non-financial, structured and panda bonds, according to their application documents.
The Wall Street Journal reported on S&P’s plan earlier.
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