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 ?
'You know, we can get an A from the Asian credit- rating agencies faster, Japan credit-rating agency, RAM [Ratings] and China, I forgot the name.
As Greece and Portugal struggle to repay massive debt, facing steep downgrade by the agencies, European politicians renew calls for an independent credit-rating agency based in that continent, reports David BAPcking for Spiegel Online.
Ford's rating outlook remains negative, the credit-rating agency said.
credit-rating agency said Japan's snowballing government debt is entering ''uncharted territory.''
''The successful introduction of i-mode, a packet-switched system that provides users Net access, has further enhanced its competitiveness,'' added the U.S.-based credit-rating agency.
INTERNATIONAL credit-rating agency Standard and Poor's Rating Services (S&P) raised its outlook on Philippine National Bank (PNB) from "stable" to "positive" after the lender completed its merger with Allied Banking Corp.
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.
credit-rating agency said it has also revised upward the outlooks on its long-term ratings on Daiwa Securities Co., Daiwa Securities SMBC and Nikko Cordial to positive from stable.
In February, S&P lowered its long-term local and foreign currency credit ratings on Japan to double-A-plus from triple-A, five months after the downgrade on yen-denominated domestic securities issued or guaranteed by the Japanese government to Aa2 from Aa1 by Moody's Investors Service Inc., its rival credit-rating agency.
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.