These NRSROs assign ratings to securities by assessing
the likelihood of issuer default.
Not exact matches
This style
of investing assumes there is a small
likelihood of a default on a subordinated high yield issue from a high - quality
issuer such as Vodafone, HSBC Holdings or Prudential for example.
In sum, bond values on the secondary market change based mainly on the collective perception
of investors about future inflation and the
likelihood that the bond
issuer will continue to make interest payments and repay bondholders when the bond matures.
All a credit score really amounts to is a quick set
of digits that translates your credit history into a numerical ranking
of the
likelihood that you'll be able to repay the money you borrow from a bank, credit union or credit card
issuer.
A rating is an evaluation
of the
likelihood that an
issuer will repay the principal and interest
of a particular bond on time and in full.