PBOC Scraps Rating Requirement for Corporate Debt Offering: Herald

The PBOC's trial policy announced yesterday, which cancels the mandatory ratings on offering debt instruments by the non-financial companies starting Aug. 11, showed the central bank's resolve in reining in unqualified external rating agencies, widely criticized by the financial industry for inaccuracies, the 21st Century Business Herald reported citing industry insiders. Regulatory authorities have issued a series of policies to make credit rating agencies accountable to the market, which may cause the agencies to lose as much as 40% of their revenues, the newspaper said citing an industry insider. Normally, debt financing instruments issued by non-financial enterprises have to be rated by a bond rating agency registered in China.