Four rating agencies form a new group

The four regional rating agencies, JCR-VIS Credit Rating Company, Pacific Credit Rating Company, European Rating Agency and Global Credit Rating Company, have announced the formation of a global network of independent rating agencies - the International Ratings Group (IRG).
This was announced on Wednesday by the representatives of these rating agencies in a global ratings conference held in Paris. The IRG and its member rating agencies will focus on providing credit ratings services throughout the emerging markets. The founding rating agencies are establishing IRG to take full advantage of the synergies offered by combining the significant expertise, methodologies and resources built up by the founders.
The IRG will provide training and research as well as common rating standards, methodologies and symbols, while allowing its members to operate under a single 'brand.' Common methodologies will cover a wide range of rating products and will allow the IRG to oversee ratings quality and member's adherence to the IRG Code of Conduct, which mirrors the recently proposed IOSCO code of conduct.
The ultimate end goal is the establishment of a single international ratings group which would be the recognised market leader in emerging markets, covering more emerging market credits than any other international ratings agency.
"The rapid growth in capital markets in emerging economies and their increasing integration with more sophisticated markets means that it is not enough for regional rating agencies to acquire experience in home economies only," said Faheem Ahmad, CEO and President of JCR-VIS Credit Rating Company. "It is vital to tap in on expertise developed in other markets to ensure an exponential learning curve and to serve their markets better", he added.
GCR Chairman Dave King said: "The reality is that the emerging markets are fundamentally different to the developed markets in the US and western Europe, and these markets call for a unique appreciation of their characteristics. The creation of IRG is a major step toward the creation of a major global presence that combines the expertise garnered from the exceptional track records of IRG's founding member rating agencies."
It is evident", says Rudo Autner, CEO of European Rating Agency, "that the global rating world is going through changes unlike any seen in the last decades. The creation of the International Ratings Group focused on emerging markets is just a small piece of the big mosaic developing in today's global marketplace..."
Oscar M. Jasaui of Pacific Credit Rating, said: "With the dramatic growth of the international financial markets, there is a need for a rating agency that really thinks globally. I believe that with the formation of the IRG, we are creating a credit rating agency, which thinks globally, but acts locally. Now our clients can benefit not only from the information regarding their own market, but can take full advantage of the information provided by the International Ratings Group."
With its formation, the IRG will represent over 1,000 ratings in the major emerging markets of Latin America, Africa, Eastern Europe and South Asia.