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 ?
Established in 1989 with its headquarter in London, UK, Skytrax is an international air transport rating organization dedicated to improving customer experience for airlines and airports across the world.
ANKARA, Feb 10, 2011 (TUR) -- International rating organization, Fitch, revised on Wednesday rating of 15 Turkish banks as positive.
Once completed, this form must be submitted to the rating organization by you, your insurance carrier(s), or your agents.
Fitch, the New-York-based international bond rating organization, is no exception.
Best is the leading credit rating organization dedicated to serving the global insurance industry.
ANKARA, Feb 9, 2011 (TUR) -- International rating organization, Fitch, revised on Wednesday rating of 15 Turkish banks as positive.
is pleased to announce that today it received notification it has been recognized as a Nationally Recognized Statistical Rating Organization (NRSRO) by the Division of Market Regulation, U.
The qualifying securities firm has a long-term credit rating in one of the three highest investment-grade credit rating categories used by a nationally recognized statistical rating organization
Securities and Exchange Commission (SEC)'s proposed rule on the Definition of Nationally Recognized Statistical Rating Organization (NRSRO).
ii) If the bank is one of the second 50 largest insured banks (based on consolidated total assets as of the end of the previous calendar year), the bank has a current long-term issuer credit rating from at least one nationally recognized statistical rating organization that is within the three highest investment grade rating categories used by the organization.
Under the final rule, a bank meets the alternative requirement if it has a current long-term issuer credit rating from a nationally recognized statistical rating organization that is within the three highest investment-grade categories used by the rating organization.
The interim rule provided that a national or state member bank meets the alternative criteria if the bank has a current long-term issuer credit rating from a nationally recognized statistical rating organization that is within the three highest investment grade rating categories used by the organization.