Credit Rating Agency

From The Free Forex Encyclopedia

Jump to: navigation, search

Credit rating agencies are companies that provide objective estimates on how capable a debt issuer (ex. banks, companies, governments) is in fulfilling its debt obligations. Today we usually see these valuations expressed in letters like AAA, BB+, or D.

A lot of major players in the credit rating industry started out by publishing basic information and statistics about stocks and bonds across different industries. Over time, as the amount of information available in markets began to overwhelm individual and institutional investors, a need for cohesive and simplified security analyses emerged.

Who are the major players in the credit rating industry?

Standard & Poor's (S&P), Moody's and Fitch Ratings are currently the top dogs in the biz.

Related Articles:

S&P Downgrades U.S. Credit Rating Outlook

U.K.: Next on the Credit Rating Chopping Block?

4 Reasons Why the Effect of S&P's Downgrades Will Be Muted

Credit Rating Agencies and their Impact on Forex Trading

"In the middle of difficulty, lies opportunity."
Albert Einstein
Clicky Web Analytics