Brics countries announced on Monday that they have moved one step closer to establishing a new credit rating company in an effort to break the dominance of the big three developed-nation firms, but said that further consultation was still needed.

Geoffrey Qhena, chair of the Brics financial services working group, said that the expert group's report over the years on the Brics credit rating agency had been acknowledged for its extensive work as it seeks to bring the long-standing matter to finality.

"The financial services group agreed that the experts group report be submitted to the Council, however further engagement be held with member countries so as to reach consensus on the outstanding matters and that consultation be held with relevant government authorities within each Brics country," Qhena said.

"So therefore, the declaration drafted on the formation of the Brics countries credit rating agency will not be signed, pending the above engagement and further consultation." 

Qhena was delivering a report back of the Financial Services and Deregulation Working Group at the Brics Business Council closing session in Durban. 

As far back in 2015, Indian Prime Minister Narendra Modi called upon members of Brics to begin the Brics credit rating agency as the country has long held the view that a new rating agency would provide an immense contribution to the existing knowledge of rating systems.