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Credit Rating Agency
(redirected from Credit bureaus)

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia 0.01 sec.
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.


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In a move to support the development of credit bureaus and enhance credit information sharing across the region, credit bureaus based in the UAE, Bahrain, Oman and Pakistan have come together to establish the Middle East Credit Reporting Association (MECRA), a non-profit association of credit information suppliers in the Middle East.
A close reading of the Fair Credit Reporting Act will reveal that Congress values the viability and the ongoing profitability of the credit bureaus over the absolute accuracy of the reporting system.
Summary: DUBAI u Credit bureaus based in the UAE, Bahrain, Oman and Pakistan on Sunday joined forces to set up the Middle EastAEs first credit reporting association, an initiative that is expected to pave way to the formation of a unified credit bureau encompassing all countries C of the region.
 
 
 
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