Credit Rating Agency

(redirected from credit agencies)

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 ?
Export Import Bank (Ex-Im) authorization expired July 1, GE has commenced talks with several foreign export credit agencies (ECAs) to secure financing for its customers.
UK Export Finance is one of the world's oldest and most respected export credit agencies, with industry-qualified advisers and specialists available to assist new exporters - and more experienced ones.
Export credit agencies aim to provide funding to companies outside their countries, on the proviso that the money is used to support home industries.
Global regulators want restrictions on banks that use the services of credit agencies.
Whilst the global and European financial crises have resulted in many international banks reducing their exposure to projects in the Middle East, the local banks have remained a cost- effective source of financing and any potential funding gap has been met by increased activity from export credit agencies and development banks.
8 billion provided by several export credit agencies and commercial banks, will lead the refinery to boost production capacity by 70 per cent (from 116,400 barrels per day to 198,000 barrels), thus allowing the production to meet growing domestic demand.
Development Bank of Kazakhstan and HSBC Bank plc signed a framework agreement to facilitate long term financing with participation of export credit agencies, the press service of the DBK said Wednesay.
The work of credit agencies would be even more restricted than that of collection agencies because the proposal would deprive them of the legal basis for their activities to the greatest extent.
Among these is the controversial - and possibly illegal - practice of relying on credit agencies for financial checks rather than information provided by the tendering companies.
Use credit agencies or credit counseling services referred by credit unions, banks, universities or military bases.
The transaction comprises a 13-year 401million loan which will amortise over 10 years starting 2015, and is guaranteed by the official government export credit agencies of Belgium (ONDD) and France (COFACE).
Credit agencies have already downgraded Greece, Spain, Ireland and Portugal for fear they cannot pay off debts.