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(CRA).
(CRA).


A firm or unit within a firm that issues [[credit rating]] opinions that are often summarised in an alpha-numerical rank ordering.
Credit rating agencies are independent institutions that assess the creditworthiness - or the credit risk - of issuers and provide credit ratings which are publicly available and used by investors, as well as analysts, as a guide for investment decisions.


Because in recent years there has been a trend towards regulation of credit rating agencies, some firms take care to avoid calling themes a credit rating agency or to call their opinions credit ratings.


In the US, the key recognition of long standing is as Nationally Recognised Statistical Rating Organisation ([[NRSRO]] by the [[Securities and Exchange Commission]]. In the [[European Union]], they have, more recently introduced the idea of registered and certified credit rating agencies recognised by the [[European Securities and Markets Authority]] (ESMA) - for European updates on CRAs see http://ec.europa.eu/finance/rating-agencies/index_en.htm.
Well known credit rating agencies include Moody's, Standard & Poor's, and Fitch.
 
 
Because of the trend towards regulation of credit rating agencies, some firms take care to avoid calling themselves a credit rating agency or to call their opinions credit ratings.
 
 
In the US, the key recognition of long standing for a credit rating agency is as a Nationally Recognised Statistical Rating Organisation ([[NRSRO]]) by the [[Securities and Exchange Commission]].  
 
 
The [[European Union]] subsequently followed suit with the idea of registered and certified credit rating agencies being recognised by the [[European Securities and Markets Authority]] (ESMA).
 
 
== See also ==
* [[AAA]]
* [[Agency]]
* [[Corporate credit ratings: a quick guide]]
* [[Credit]]
* [[Credit rating]]
* [[Credit reference agency]]
* [[Credit risk]]
* [[Creditworthiness]]
* [[External Credit Assessment Institution]]
* [[Fitch]]
* [[Investment grade]]
* [[Issuer]]
* [[Moody's]]
* [[Ratings]]
* [[Regulation]]
* [[SRA]]
* [[Standard & Poor's]]
* [[Sustainability]]
 
 
==Other resource==
[https://www.esma.europa.eu/esmas-activities/investors-and-issuers/credit-rating-agencies ESMA - Credit rating agencies]
 
[[Category:Financial_risk_management]]
 
[[Category:Financial_risk_management]]

Latest revision as of 21:31, 27 March 2024

(CRA).

Credit rating agencies are independent institutions that assess the creditworthiness - or the credit risk - of issuers and provide credit ratings which are publicly available and used by investors, as well as analysts, as a guide for investment decisions.


Well known credit rating agencies include Moody's, Standard & Poor's, and Fitch.


Because of the trend towards regulation of credit rating agencies, some firms take care to avoid calling themselves a credit rating agency or to call their opinions credit ratings.


In the US, the key recognition of long standing for a credit rating agency is as a Nationally Recognised Statistical Rating Organisation (NRSRO) by the Securities and Exchange Commission.


The European Union subsequently followed suit with the idea of registered and certified credit rating agencies being recognised by the European Securities and Markets Authority (ESMA).


See also


Other resource

ESMA - Credit rating agencies

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