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Credit Rating Agency
(redirected from Credit-Rating Agencies)

   Also found in: 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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The story of the credit-rating agencies is a story is a story of colossal failure.
TOKYO, March 6 Kyodo ---------- Gov't OKs bill to regulate credit-rating agencies TOKYO - The government endorsed a bill Friday to regulate credit-rating agencies in response to criticism that their lax rating activities are partly responsible for the current financial crisis.
State Attorney General Andrew Cuomo on Thursday announced a deal with the nation's major credit-rating agencies aimed at ensuring such scrutiny.
 
 
 
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