rating 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.

Rating Service

A company that evaluates preferred stocks and debt securities based on the likelihood of default. The ratings service provides an objective rating to the security; the rating is higher when the likelihood of default is lower. There are three main ratings services: Moody's, Fitch, and Standard & Poor's. Companies issuing new preferred stocks or debt securities pay one or more of the ratings services to have their securities rated. Banks are not allowed to invest in securities with ratings below a certain level. See also: Investment-grade, Junk.

rating agencies

Companies that grade securities so as to indicate the quality of the securities for investors. The two major rating services are Moody's Investor Services and Standard & Poor's Corporation. Two lesser known rating firms are Duff & Phelps and Fitch Investors Service.
References in periodicals archive ?
Besides, the regulator expects rating agencies to make meaningful disclosures regarding liquidity using simple terms such as superior or strong, adequate, stretched or poor, with appropriate explanations to help the end users understand them better.
The apex bank raised its concerns about 'rating advisers', unregulated entities acting as brokers between companies and rating agencies. In a recent meeting, RBI governor Shaktikanta Das had criticised the practice of rating agencies rating a bond as well as deciding its valuation used by mutual funds (MFs) to calculate the net asset value, or NAV, of an MF scheme.
Morgan Stanley analyst Toni Kaplan said she is increasingly cautious on the credit rating agencies given her view that recent spread widening has the potential to further impact issuance.
Cyprus' creditworthiness is expected to be reviewed eight times in 2019, according to the next assessments scheduled by credit rating agencies.
New York: Broader participation by more rating agencies is increasing rating disparities for new U.S.
for foreign objects rating - the sovereign credit rating of the Russian Federation in the relevant currency on the international rating scale of at least one of the credit rating agencies Fitch Ratings, S & P Global Ratings, Moody's Investors Service (hereinafter - foreign credit rating agencies), reduced by two steps.
KARACHI -- State Bank of Pakistan has renewed the status of both credit rating agencies operating in Pakistan namely 'JCR-VIS Credit Rating Company Limited (JCR-VIS)' and 'The Pakistan Credit Rating Agency Limited (PACRA)' as eligible/ recognized External Credit Assessment Institutions (ECAIs) for the calendar year 2018.
KARACHI -- The State Bank of Pakistan (SBP) has renewed the status of both credit rating agencies operating in Pakistan namely JCR-VIS Credit Rating Company Limited and The Pakistan Credit Rating Agency Limited as eligible/ recognized External Credit Assessment Institutions (ECAIs) for the calendar year 2018.
Turkey announced plans to create its own credit rating agency in mid-March, driven by a long-standing complaint about international rating agencies, which downgraded the country's rating more than once in the past two years, prompting Turkey to issue strong criticism of the international agencies claiming their rating of its economy are unfair, politicized and unrealistic, according to Future for Advanced Research and Studies (FARAS).
"The outlook expresses Moody's expectation of how bank creditworthiness will evolve in Lebanon over the next 12-18 months," the rating agency said.Other rating agencies have also changed their outlook of the banking sector to stable, noting a real improvement in the political and economic picture following the election of President Michel Aoun and the creation of a national unity government.
The two leading credit rating agencies Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited (JCR-VIS) have maintained long term and short term entity ratings of The Bank of Khyber (BoK) at "A" (Single A) and "A1" (A One), respectively for the period ended June 30, 2016.
PESHAWAR -- The two leading credit rating agencies Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited (JCR-VIS) have maintained long term and short term entity ratings of The Bank of Khyber (BoK) at "A" (Single A) and "A1" (A One), respectively for the period ended June 30, 2016.