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.
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KNPC's Deputy CEO for Planning and Finance Shukri Al-Mahrous said that dealing with credit agencies is a difficult process, citing a pact reached with seven reputable global credit agencies.
Minister of Economic Development and Trade of Ukraine Aivaras Abromavicius opened the first large-scale international event for export credit agencies concerned in Ukraine.
Illingworth noted that Asian banks, especially the export credit agencies of China and South Korea, have been actively participating in shipping finance and stepping up to replace the retreating European banks.
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.
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 approval of Credit Agencies is an activity vested on the Director of Commerce for well over 60 years, by the Mortgage Act No 06 of 1949, the Trust Receipts Ordinance 12 of 1947 and the Inland Trust Receipts Act No 14 of 1990.
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.
Each of the transactions has a 10-year repayment term, matching terms offered by other export credit agencies.
Credit agencies have already downgraded Greece, Spain, Ireland and Portugal for fear they cannot pay off debts.

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