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 ?
Ford's rating outlook remains negative, the credit-rating agency said.
credit-rating agency said Japan's snowballing government debt is entering ''uncharted territory.
Vivendi is also listed on the ASPI Eurozone index drawn up by the credit-rating agency VIGEO and on the Ethibel Sustainability Index (ESI) drawn up by the firm ETHIBEL.
Another international credit-rating agency Fitch Ratings also said Friday it has left unchanged the banks' local and foreign currency ratings, as well as individual and support ratings.
credit-rating agency attributed the review to Yamaha's strong operating performance and also to an improvement in cash flow coverage ratios, supported by the rapidly growing Asian market and its ongoing rationalization efforts.
credit-rating agency for the downgrading of Japan's sovereign debt.
One large merger would probably lead to several,'' said Philip Baggaley, an airline-industry analyst at the Standard & Poor's credit-rating agency.
Korea Information Service was established in 1985 as the Korea's first credit-rating agency and is the nation's leading consumer/commercial information provider.
credit-rating agency said it has also revised upward the outlooks on its long-term ratings on Daiwa Securities Co.
credit-rating agency also said it has affirmed its A minus long-term corporate credit rating on the company, which operates the Uniqlo casual-wear retail chain.
credit-rating agency assigns long-term credit ratings of BBB-plus to BTM, BBB-plus to Mitsubishi Trust, BBB to Mitsubishi Securities and BBB to Sumitomo Trust.
credit-rating agency started the review for possible downgrade on the rating of yen-denominated domestic securities issued or guaranteed by the Japanese government.