Best rating agency for ABS/MBS 2019
China Chengxin International Credit Rating
China Chengxin International Credit Rating (CCXI) is the largest credit rating agency in China and the fourth largest in the world. A joint venture between China Chengxin Credit Management Co and Moody’s, CCXI claims to have rated every single ‘first’ deal in the ABS market.
CCXI, led by Yan Yan, has rated landmark deals including the first RMBS in 2005 by China Construction Bank, the first non-performing loan ABS in 2006 and the first ABS with over-collateralization in 2014.
As the Chinese ABS market picked up pace in recent years, CCXI also rated more complicated deals, including the first credit loan ABS deal originated by a foreign bank (Huiyuan 2015 CLO), the first consumer finance ABN product (Jingdong Baitiao 2017), and the first CLO linked to the new benchmark interest rates (Xingyin 2019-4).
CCXI has cemented its leading position in both the interbank and exchange markets. Since 2012 when the ABS market went through a mini-revival, CCXI has consistently had a controlling market share of more than 50%. Last year, CCXI further expanded its coverage in the credit ABS realm. In the first nine months of this year, the credit rating firm boasted a 57.5% market share in credit ABS.
Although many innovative deals will be quickly forgotten and have no followers, a credit analyst still needs to do the hard work to understand the structure and assets behind each deal. With each ‘first’, CCXI has understood the Chinese ABS market a bit better.
As the market continues its rapid transformation, CCXI is poised to deepen its understanding and prepared to lead the market’s developments.