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 ?
Since the ground realities cannot be masked from the ordinary folks anymore, the politicians did not make any attempt to find faults with the credit rating agency in the aftermath of the downgrade.
credit rating agency Standard & Poor's Ratings Services will cut its long-term sovereign ratings of France and some other eurozone countries later Friday, market analysts said.
Under CRARA, a credit rating agency seeking to be treated as an NRSRO must apply for and be granted registration with the Commission and make public in its application certain information to help people assess its credibility.
For example, if a company is considering acquiring a competitor to increase its market share and service offering it could ask a credit rating agency to carry out a "scenario assessment".
"The credit rating agency Moody's has reviewed our rating outlook and raised it to stable.
Riyadh, 28 Aug: Saudi Telecom maintained its rating degree (A +), which is assigned by the international credit rating agency Inc.
SIFMA formed its global, investor-led Credit Rating Agency Task Force to examine key issues related to credit ratings and credit-rating agencies worldwide.
Credit rating agency Fitch reviewed Icelandic banks in the early part of 2008.
The credit rating agency said Goldman has been Wall Street's profit leader for several years and has very strong liquidity, but that its emphasis on trading and "aggressive" risk appetite expose it to potential for "major missteps."
Moody's Investors Service, international credit rating agency, raised Korea's sovereign credit rating on July 25 by one notch from 'A3' to 'A2,' the sixth-highest level, after reviewing the improvement in the country's overall economic performance and eased geopolitical risks.
Our Committee on Corporate Finance (CCF) was an early and forceful advocate of the Credit Rating Agency Reform Act of 2006.
According to credit rating agency Fitch, so-called structured finance dropped by almost half to $3.6 billion in 2002.