"The issue … will come up for some intense discussions when BRICS finance ministers meet in Durban on March 26 ahead of the BRICS leaders' fifth summit," said an Indian official closely involved in the intra-BRICS discussions on this matter. He spoke on condition of anonymity, since he is not authorized to speak to the media. "The ball will now be in the court of BRICS finance ministers who will decide what is to be done. The matter would be put before the BRICS leaders' consideration only after the finance ministers make such a determination in their wisdom," the official added.
He also said the move was aimed at creating long-term political and economic benefits.
Politically, a BRICS-run rating agency would have the goal of providing an alternate mechanism to give credit ratings to emerging-market countries, assessments that are independent of the developed world's ratings — often seen in the developing world as being biased and politically motivated.
Economically, a BRICS rating agency would aim to get market share in the ten billion dollar rating industry, the official said. Currently, three Western giants — S&P, Fitch and Moody's — have a 90 percent share of the ratings market and are headquartered in the United States. Fitch has dual headquarters in New York City and London and is controlled by a French company.
The Indian position on the subject was highlighted by retired Indian Home Secretary Gopal Krishna Pillai. While speaking at a seminar organized by the Indian think tank Observer Research Foundation in New Delhi in July, Pillai said BRICS members should also establish an international credit rating agency to offset the biased agendas of some of the rating agencies. He said this was necessary to control what he called the "skewed information inflows" in the world.
BRICS Credit Rating Agency Proposal Being Finalized | Business | The Moscow Times
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