BRICS may set up ratings agency for emerging markets
A media report states that the aim is to challenge western hegemony in the world of finance.The BRICS countries (Brazil, Russia, India, China and South Africa) are considering setting up a credit ratings agency to challenge the western hegemony in the world of finance, according to the Economic Times of India.
Moody's, Fitch and Standard & Poor's together account for 90 per cent of the global ratings market.
The newspaper states that several emerging economies complain that western ratings firms are biased and pessimistic.
According to BRICS sources, the new ratings agency could assist emerging countries with their infrastructure needs, as it will be able to rate infrastructure and sustainable projects in these countries.
According to the World Bank, the cost of redressing Africa’s infrastructure deficit is estimated at $38 billion (€33.7 billion) of investment per year, and a further $37 billion per year in operations and maintenance.
The Credit Rating Agency for Emerging Markets is likely to take shape at the BRICS Summit hosted by India in October.