Credit Rating Wiki -
: The global market is dominated by three major agencies: S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings . Together, they hold approximately 95% of the market share.
Agencies conduct both quantitative and qualitative analyses, including:
: Ratings are expressed as letter grades, typically ranging from AAA (highest quality) to D (default) . credit rating wiki
: Investors use these ratings to gauge the risk of default before buying bonds or debt instruments. Higher-rated entities can generally borrow money at lower interest rates. Credit Rating Scale Tiers Agencies divide their scales into two primary categories:
: Unlike personal credit scores used for individuals, credit ratings are assigned to corporations, national governments (sovereign), and structured finance products . : The global market is dominated by three
: Ratings from AAA down to BBB- (or Baa3 for Moody's). These indicate a relatively low to moderate risk of default.
: Revenue stability, cash flow, and debt-to-equity ratios. : Investors use these ratings to gauge the
: Political stability (for sovereign ratings), inflation, and industry trends.