Credit Rating Agency

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Credit Rating Agency

A company that provides investors with assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. A high rating indicates low risk and may therefore encourage investors to buy a security. Additionally, banks may only invest in securities with a high rating from two or more credit rating agencies. The SEC recognizes 10 firms as credit rating agencies; Fitch, S&P, and Moody's are the three most prominent. However, the methods of credit ratings agencies have been subject to criticism. For example, most agencies gave high-risk mortgage-backed securities top ratings until they defaulted at the collapse of the housing bubble.
References in periodicals archive ?
Credit ratings agency Standard & Poor's cut Bulgariaas sovereign credit ratingto BB+ from BBB- with a stable outlook.
The credit ratings agency explains the downgrade with the situation at Corporate Commercial Bank (KTB, Corpbank), which suffered a run on deposits and had to be taken over by the central bank, as well as the provision of liquidity support to First Investment Bank, and the fiscal deterioration throughout the year.
This marks the first time in history that our nation has been granted investment grade status by a major credit ratings agency," Aquino said in a statement.
One credit ratings agency, Fitch, warned that Britain's rating was at risk, saying it expected debt by 2015 to be "approaching the upper limit of the level consistent with the UK retaining its AAA status".
International credit ratings agency Standard & Poor's downgraded The Bahamas' sovereign credit rating for the second time in two years, reports The Nassau Guardian (Nov.
Another international credit ratings agency, Moody's, downgraded the country's economic outlook from stable to negative in August.
Summary: Credit ratings agency Moody's downgraded six Dubai-based companiesC*
Credit ratings agency Moody's downgraded six Dubai-based companies on Tuesday including DP World, Dubai Electricity and Water Authority, Emaar Properties, Jebel Ali Free Zone, Dubai Holding Commercial Operations Group, and DIFC Investments.