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BRICS Agree to Set Up Credit Rating Agency

The five-nation group BRICS agreed to set up an independent rating agency based on market-oriented principles, saying it would further strengthen the global governance architecture.
●    “We believe that BRICS institution-building is critical to our shared vision of transforming the global financial architecture to one based on the principles of fairness and equity,” the declaration stated. “ further bridge the gap in the global financial architecture, we agreed to fast-track the setting up of a BRICS Rating Agency,” Prime Minister Narendra Modi said in a statement at the conclusion of the BRICS Summit.
●    Batting for a rating agency backed by BRICS, New Development Bank president K.V. Kamath had expressed concerns over methodologies of the three global agencies (S&P, Fitch, Moody’s) saying that these constrain growth in emerging nations. He had said that ratings of multilateral banks like the BRICS-promoted NDB were affected by the parent countries’ ratings, despite having deep capital buffers.

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