What is Credit Rating?

What is Credit Rating?

Credit Rating is determined by Credit Rating agencies and is an evaluation of the debt issuers likelihood of default

Evaluates the credit worthiness of an issuer of specific types of debt

Represents the credit rating agency’s evaluation of qualitative and quantitative information for a company or government;

Please note that generally Credit Ratings are NOT based on mathematical formulas instead Credit rating agencies use their judgment and experience in determining what public and private information .

It is used by individuals and entities that purchase the bonds issued by companies and governments to determine the likelihood that the government will pay its bond obligations.
Previous
Next Post »

Commercial Advertisement