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Credit Rating Agencies

   Also found in: Acronyms, Wikipedia 0.01 sec.
Credit Rating Agencies
Firms that compile information on and issue public credit ratings for a large number of companies.

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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AaAaAaAaAaSimilarly, credit rating agencies are relatively unconcerned by the specialist terminology used, and remain agnostic whether premiums should be called tabarru (donation, contribution or gift), or that policyholders are called "participants".
In 2006, Congress passed the Credit Rating Agency Reform Act that provided the SEC with authority to impose registration, recordkeeping, and reporting rules on credit rating agencies registered as Nationally Recognised Statistical Rating Organisations (NRSRO).
Credit rating agencies say should Turkey decide not to sign an agreement with IMF, it still would need a new programme regarding medium term economic goals which would meet Turkey's foreign financing requirements around 20 to 30 billion USD.
 
 
 
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