SHANGHAI Jan 14 Global credit ratings
agencies have a great responsibility not to amplify the ongoing
European debt crisis, the official Xinhua news agency said in a
commentary on Saturday.
Xinhua, which often represents the Chinese government's
view, said Standard & Poor's (S&P) downgrade of nine euro zone
countries, including France, was legitimate, but questioned the
timing and said there were signs the crisis was alleviating.
"The Standard and Poor's (S&P) downgrade move, though
containing some legitimate concerns, also raised fresh doubts
over the credibility of ratings agencies," Xinhua said in a
"As the crisis is showing tentative signs of receding, the
S&P's overwhelming downgrade has once again weighed on the
market and dented investors' confidence" Xinhua said.
On Friday, Standard & Poor's downgraded the credit ratings
of nine euro- zone countries, stripping France and Austria of
their coveted triple-A status but not EU paymaster Germany.
"With great power comes with great responsibility. In this
connection, the ratings agencies should use their power with
caution to avoid becoming an ominous amplifier of the ongoing
sovereign debt crisis in Europe," Xinhua said.
Xinhua said credit agencies should be objective and
professional in analyzing the market situations and that
investors should reduce their reliance on the agencies and make
their own judgements.
Citing the 2008 financial crisis, Xinhua said the failure of
ratings agencies to assess the risky financial products that
contributed to the financial crisis.
"As global investors should be warned about the major risks
of the European debt mess, ratings agencies should also do their
honest job and not repeat their past mistakes to win back the
trust of global investors," Xinhua said.