Credit Rating Agency

Credit rating agencies are companies that provide assessments of the credit risk of prospective debtors. They estimate the capability of fulfilling debt obligations by debt issuers, evaluating as AAA, BB+ or D. Three major credit rating agencies are Standard & Poor’s (S&P), Fitch Ratings, and Moody’s.
Many major credit rating companies started from publishing basic information and statistics on stocks and bonds in different industries. However, with less and less information available in the market, individual and institutional investors felt overwhelmed, so that qualified and liable security analysis appeared in the market.