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 ?
2 million credit facilities of individuals residing in the UAE have been added to the bureau's credit reporting system.
Online credit reporting firm Credit Reporting Agency said the move should make people more aware of the information held about them and should help reduce errors.
Then she contacted all three of the national credit reporting agencies and had a fraud alert put on her record to prevent the thieves from obtaining credit elsewhere.
Creditors and credit reporting agencies work diligently to maintain accurate records, but with millions of updates made each day, mistakes can happen.
The FACT Act, among other things, extended provisions governing the credit reporting system and addressed ongoing concerns about inaccuracies in credit reports.
In 2002, a joint study conducted by the Consumer Federation of America and the National Credit Reporting Association found evidence that the information included in credit reports of any given individual can differ widely across agencies.
As a result, the federal government has made sweeping changes and additions to the Fair Credit Reporting Act (FCRA).
After an 11th-hour attempt by two Senate Democrats to add a controversial amendment, the full Senate reauthorized the Fair Credit Reporting Act, which frees insurers and bankers from having to contend with 50 different states' privacy laws.
If you choose to use consumer reports in your employment decisions, don't risk a lawsuit; be sure to comply with the Fair Credit Reporting Act.
It is calling for a strong national law on credit reporting that would still allow U.
2622, a bill to reauthorize and amend the Fair Credit Reporting Act (FCRA).
a provider of credit reporting software components to the financial services industry has introduced Version 3.