Credit rating

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Revision as of 13:01, 16 September 2024 by Doug (talk | contribs) (Expand second definition for trade credit ratings.)
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1. Larger organisations - borrowings - securities - bonds - credit rating agencies.

A standardised assessment, expressed alphanumerically, of the creditworthiness of an entity raising debt capital – be it a company, an investment vehicle (mutual fund), a country (sovereign) and its affiliated public agencies or regional/local authorities or a supranational institution – provided by credit rating agencies to investors and analysts.

Credit ratings also serve as a measure of the risks related to specific financial investments.


2. Smaller & medium sized organisations - credit reference agencies - trade credit rating agency.

An external assessment of general creditworthiness for a smaller organisation, provided by a credit reference agency or trade credit rating agency.


See also


Other resource

Measuring up, The Treasurer, Nov 2014