New Brics ratings agency on the cards

As South Africa waits with
bated breath for a possible
ratings downgrade, the
Brics nations – Brazil,
Russia, India, China
and South Africa – have
agreed to fast-track the
establishment of their own
credit ratings agency.
This was announced by
India’s prime minister,
Narendra Modi, last Sunday
during the 2016 Brics
Summit held in Benaulim,
Goa.
The establishment of
the agency comes amid
accusations from within
the bloc that the three
traditional ratings agencies
– Moody’s, Standard &
Poor’s and Fitch Ratings
– are all Western-based
and thus favour those
economies.
Plans for the agency follow
the establishment of a Brics
bank 12 months ago with
an initial capital of $100
billion. No date has been set
for the establishment of the
ratings agency.
CAPTION
Indian Prime Minister, Narendra Modi, addresses the BRICS Business Council meeting
during the BRICS Summit in Benaulim, Goa. Seated are Brazilian president Michel
Temer; Russian president Vladimir Putin, Chinese president Xi Jinping and president.