Definition of «rating agencies»

Rating agencies are companies that assign credit ratings to issuers of securities, such as bonds or stocks. These agencies use complex mathematical models and analytical methods to assess an issuer's ability to repay its debt obligations in a timely manner. The resulting rating is used by investors to evaluate the risk associated with a particular security and make informed decisions about whether to purchase it. Some of the largest and most well-known rating agencies include Moody's, Standard & Poor's (S&P), and Fitch Ratings.

Sentences with «rating agencies»

  • It should also be noted that you will be able to reduce the debt usage ratio which is taken into consideration by credit rating agencies by using personal loans. (personalmoneyservice.com)
  • These ratings represent the opinions of rating agencies about the ability of an insurance company to meet its financial obligations. (goodfinancialcents.com)
  • And we continue to earn top financial strength and performance ratings from major rating agencies. (protective.com)
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