Credit rating: Difference between revisions

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A credit rating is an assessment of creditworthiness.
1. ''Larger organisations - borrowings - securities - bonds - credit rating agencies.''
Although the general term can apply to individuals and smaller businesses, in treasury it is usually used with reference to public debt issued by larger corporations or public bodies.


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 credit rating agencies or other 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.




== See also ==
== See also ==
* [[AAA]]
* [[AAA]]
* [[Agency]]
* [[Bond issue]]
* [[Bond issue]]
* [[Climate change: testing the resilience of corporates’ creditworthiness to natural catastrophes]]
* [[Climate change: testing the resilience of corporates’ creditworthiness to natural catastrophes]]
* [[Corporate credit ratings: a quick guide]]
* [[Corporate credit ratings: a quick guide]]
* [[County court judgment]]
* [[County court judgment]]
* [[CQS]]
* [[Credit]]
* [[Credit]]
* [[Credit Benchmark]]
* [[Credit Benchmark]]
* [[Credit estimate]]
* [[Credit estimate]]
* [[Credit migration risk]]
* [[Credit Quality Step]]
* [[Credit rating agency]]
* [[Credit rating agency]]
* [[Credit reference agency]]
* [[Credit risk]]
* [[Credit score]]
* [[Credit score]]
* [[Credit watch]]
* [[Credit watch]]
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* [[Downgrade]]
* [[Downgrade]]
* [[ESG ratings]]
* [[ESG ratings]]
* [[ESG Relevance Score]]
* [[Fitch]]
* [[Fitch]]
* [[ICR]]
* [[ICR]]
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* [[Junk]]
* [[Junk]]
* [[Moody's]]
* [[Moody's]]
* [[Mutual fund]]
* [[NAIC]]
* [[NAIC]]
* [[Non-investment grade]]
* [[Non-investment grade]]
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* [[SACP]]
* [[SACP]]
* [[Solicited rating]]
* [[Solicited rating]]
* [[Sovereign]]
* [[Standard & Poor's ]]
* [[Standard & Poor's ]]
* [[Sub-prime lending]]
* [[Sub-prime lending]]
* [[Supranational]]
* [[Toxic]]
* [[Toxic]]
* [[Unrated]]
* [[Unrated]]
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===Other links===
==Other link==
[[Media:Nov14TTtreasuryessentials46.pdf |Measuring up, The Treasurer, Nov 2014]]
[[Media:Nov14TTtreasuryessentials46.pdf |Measuring up, The Treasurer, Nov 2014]]


[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Treasury_operations_infrastructure]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 16:13, 9 July 2022

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