: The global market is dominated by three major agencies: S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings . Together, they hold approximately 95% of the market share.
A is an independent, letter-graded assessment of the creditworthiness of a business or government entity. It serves as a measure of an obligor's ability and willingness to meet its financial obligations, such as bond interest and principal payments, in full and on time. Key Characteristics
: Political stability (for sovereign ratings), inflation, and industry trends.
Agencies conduct both quantitative and qualitative analyses, including:
For further research on specific corporate or sovereign health, you can consult the official portals of S&P Global , Moody's , or Fitch Ratings . Credit Rating vs. Credit Score: What's the Difference?
: Unlike personal credit scores used for individuals, credit ratings are assigned to corporations, national governments (sovereign), and structured finance products .
: Investors use these ratings to gauge the risk of default before buying bonds or debt instruments. Higher-rated entities can generally borrow money at lower interest rates. Credit Rating Scale Tiers Agencies divide their scales into two primary categories: