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China MediaExpress Holdings Gets Coveted AAA Credit Rating!!!
This is from Stone Street Advisors
Who cares if a firm's auditor resigns when said firm is awarded a
magic AAA credit rating!!?!?! All you CCME longs who've been waiting
for some news, any news, let alone good news may finally have your day (h/t @jcom67):
Who
is Beijing ZhongKeJingXie Credit Assessment Center Co., Ltd., you ask?
I have absolutely no idea. Never heard of 'em before, but considering the opinions of even the most "respectable" ratings firms in all the land (Moody's, S&P) aren't worth their weight in crap, how much faith should investors put in an opinion from an unknown Chinese firm?
What we do know is that (via google
translate), their website looks semi-shady, and on its contact page, includes an email address not @zxxp.net (matching their website) but "yongfeng82000@126.com".
I'm not sure how things work in China, but in the U.S., Europe, and the rest of the reasonably-developed World, this doesn't exactly support
the credibility of said "AAA" rating or the firm that granted it.
I'm
going to look into this a bit and see what I can find, although so-far
its looking like this is just another weak step by CCME management to
detract from criticism and support the legitimacy of the firm, i.e. it
looks like BS. Here's the full press release from the CCME website:
19 April 2011
Fujian Fenzhong Media Co., Ltd. is Awarded AAA Credit Rating
In
April 2011, entrusted by our company, Beijing ZhongKeJingXie Credit
Assessment Center Co., Ltd. carried out a comprehensive analysis on the
enterprise's management quality, capital strength, performance credit
and innovation capacity. After the evaluation by the Assessment
Committee of Beijing ZhongKeJingXie Credit Assessment Co., Ltd., our
company is awarded AAA credit rating, that is, strong ability to repay
debts, basically independent to the impact of adverse economic
conditions, with extremely low default risk. It is reported that Beijing
ZhongKeJingXie Credit Assessment Co., Ltd. is one of the most reputable
credit rating agencies in China that has consistently adhered to its
independent, objective, impartial and scrupulous rating principles; its
rating work has received full recognition from the relevant departments
and agencies, and its rating results are also well recognized by the
community and investors.Credibility is the key of the market
economy, and it enjoys the supremacy; the credibility is both the life
of enterprises, and the foundation to establish good trade relations and
economic transactions. Only those enterprises that stress credibility
and honor reputations can obtain the trusts of customers and the
community. The award of AAA Credit Rating to our company, and has
encouraged us to uphold the spirit of good faith in the future to
achieve a more harmonious development.
Picture here just in case CCME tries to pull it down:
UPDATE: A friendly commentator informs us that using such email domains is not out of the ordinary for co's doing business in china. Even if that is the case, this is a rating firm that claims it has been engaged to rate debt of major, major projects/firms with investors/debt holders outside mainland China. If any of that is true, you'd think an investment in a globally-recognized standard website/contact info would be worthwhile, no?
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should be easy to analize, just ask what their rating on us treasuries are. That should tell you if they are legit or lying.
that one made my day :)