Updated By: LatestGKGS Desk
BRICS countries setting up independent rating system, NDB bank
BRICS countries decide to set up independent rating system, NDB bank, at BRICS Summit Goa
BRICS countries at the 8th Summit in Goa have agreed to set up an independent rating system based on market oriented principles.
BRICS countries have jointly set up a new development bank to provide funds to the BRICS countries.
Parent countries or the promoter countries are not A-rated and for this independent rating is necessary
The ratings of Parents’ countries of BRICS affect the Multinational Banks like BRICS New Development Banks.
NDB president in context to new credit rating policy expresses concerns over practises of big global agencies that are limiting the growth of emerging nations.
The promoter countries are not A-rated therefore rating of NDB for bond raising will also be affected.
For this reason, the BRICS countries in the summit decided to set up an independent rating system.
Export-Import Bank popularly known as Exim Bank was also had an independent rating agency for BRICS countries.
