CRI听力:China's Dagong Launches Infrastructure Rating Methodology

In an attempt to make investing in infrastructure projects more stable, Dagong International has established a system which applies a rating based on its analysis of the project.

Dagong Chair Guan Jianzhong says unlike other ratings agencies, their infrastructure rating system follows a project from beginning to end.

"Currently, no other credit rating agency has a methodology that looks at infrastructure construction as its happening. All they do is focus on the infrastructure projects once they're completed and operational. In other words, they are unable to assess the risks of certain project during its construction period. "

Traditionally, infrastructure projects have been difficult to finance, as they are often high-cost and low reward for investors.

However, against the backdrop of a somewhat sluggish world economy, countries around the world have been looking more toward infrastructure as a way to keep economic growth moving.

Fang Qiuchen, Chair of China International Contractors Association, says this is going to require money from different areas.

"Conventional financing from either direct government investments or bank loans aren't enough to meet the needs of today's infrastructure construction. Many of our Chinese contractors, while participating in international infrastructure projects, often find it difficult to find money to keep going, as the channels for financing are too narrow."

Dagong's Guan Jianzhong says by offering up a more comprehensive rating system for infrastructure projects, investors will have a much better sense of what they're putting their money toward.

"Old ratings systems didn't take certain important factors into consideration such as environmental and social sustainability. This meant that people lacked awareness... This is important, particularly today, when issues surrounding ecology and environmental sustainability are factored in, as they have direct and long-term impacts on human beings."

Former Pakistani Prime Minister Shaukat Aziz says he fully expects Dagong will be able to capitalize on its new ratings system through the Chinese government's "Belt and Road" initiative.

"One way to bring companies out on the global stage is through the role played by credit rating agencies like Dagong. As we see the One Belt, One Road and many other infrastructure initiatives, I think this creates game changing initiative for credit rating agencies. "

The "belt and road" initiative is expected to create billions of dollars in infrastructure projects in countries throughout the routes.

For CRI, I am Wang Mengzhen.