[Jan] Credit Rating Flashcards
What?
A credit rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.
A credit rating can be assigned to any entity that seeks to borrow money—an individual, corporation, state or provincial authority, or sovereign government.
What is sovereign credit rating?
independent assessment of the creditworthiness of a country or sovereign entity.
what is rating agency?
company that assesses the financial strength of companies and government entities, especially their ability to meet principal and interest payments on their debts.
The Big Three Credit Rating Agencies: Fitch Ratings, Moody’s Investors Service and Standard & Poor’s (S&P) are the big three international credit rating agencies controlling approximately 95% of global ratings business.
