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An assessment of creditworthiness.  
1. ''Larger organisations - borrowings - securities - bonds - credit rating agencies.''
 
Although the general term can apply to individuals, in treasury it is usually used with reference to public debt issued by corporations or public bodies.
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.''
 
An external assessment of general creditworthiness for a smaller organisation, provided by a credit reference agency.


So for example a bond issue by a large corporation, or by a government, would usually be given a credit rating by one or more rating agencies.


== See also ==
== See also ==
* [[AAA]]
* [[AAA]]
* [[Agency]]
* [[Bond issue]]
* [[Bond issue]]
* [[Climate change: testing the resilience of corporates’ creditworthiness to natural catastrophes]]
* [[Corporate credit ratings: a quick guide]]
* [[County court judgment]]
* [[Credit]]
* [[Credit]]
* [[Credit Benchmark]]
* [[Credit estimate]]
* [[Credit estimate]]
* [[Credit migration risk]]
* [[Credit Quality Step]]
* [[Credit rating agency]]
* [[Credit reference agency]]
* [[Credit risk]]
* [[Credit score]]
* [[Credit watch]]
* [[Credit watch]]
* [[Creditworthiness]]
* [[Downgrade]]
* [[Downgrade]]
* [[ESG ratings]]
* [[ESG Relevance Score]]
* [[Fitch]]
* [[Fitch]]
* [[ICR]]
* [[In default]]
* [[Investment grade]]
* [[Investment grade]]
* [[Junk]]
* [[Junk]]
* [[Moody's]]
* [[Moody's]]
* [[Mutual fund]]
* [[NAIC]]
* [[Non-investment grade]]
* [[Non-investment grade]]
* [[Notch]]
* [[Notch]]
* [[pi]]
* [[pi]]
* [[Pricing grid]]
* [[Pricing grid]]
* [[Prime]]
* [[Private rating]]
* [[Private rating]]
* [[Public information rating]]
* [[Public information rating]]
* [[Public rating]]
* [[Public rating]]
* [[Rated]]
* [[Rated]]
* [[Rating agencies]]
* [[SACP]]
* [[Rating outlook]]
* [[Ratings]]
* [[Ratings trigger]]
* [[Solicited rating]]
* [[Solicited rating]]
* [[Sovereign]]
* [[Standard & Poor's ]]
* [[Standard & Poor's ]]
* [[Sub-prime lending]]
* [[Sub-prime lending]]
* [[Supranational]]
* [[Toxic]]
* [[Toxic]]
* [[Unrated]]
* [[Unrated]]
* [[Unsolicited rating]]
* [[Unsolicited rating]]
* [[Upgrade]]
* [[Upgrade]]


==Other link==
[[Media:Nov14TTtreasuryessentials46.pdf |Measuring up, The Treasurer, Nov 2014]]
[[Category:Manage_risks]]
[[Category:Treasury_operations_infrastructure]]

Latest revision as of 19:37, 27 January 2024

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.

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


See also


Other link

Measuring up, The Treasurer, Nov 2014