Credit rating agencies (CRA) are financial service firms which assess the ability of a company or person to pay back a loan. It plays an important role in the efficient functioning of the national and international fixed income markets. The agencies offer an independent financial analysis about credit. The three largest credit rating agencies are Standard & Poor's, Moody's Investor Service, and Fitch Ratings.
Credit rating agencies vary significantly in their size, focus, and methodologies. Some of them focus on particular regions or industries. Some others provide services to firms including privately-held companies. They do not rate the credit risks of specific fixed-income securities. Some agencies offer subsidiary business services like risk management and consulting services.
Issuers, lenders, fixed-income investors, investment banks, broker-dealers, and government regulators use credit ratings for a variety of purposes. For investors, credit rating agencies enhance the range of investment options providing independent, easy-to-use measurements of relative credit risk. Issuers use these agencies for independent verification of their own credit-worthiness. Broker-dealers and investment banks also use credit rating agencies for calculating their own risk portfolios.
Credit rating agencies are employing more accounting professionals and seeking increased interaction with independent auditors. The reputations of these agencies provide a strong inspiration to maintain the reliability in the ratings. The credit rating agencies update their ratings at least yearly.
The other three major credit rating agencies in the United States are Experian, Equifax and TransUnion. They calculate their own FICO (Fair Isaac Credit Rating Score) scores that go by different trademark names and different versions. Each version tracks information independently creating a credit report. The reports contain full customer details and financial results.
A good credit score from a credit rating agency will allow you to qualify for lower-cost mortgages. Activities of credit rating agencies are public and all information on rating decision is available on the Internet.
Credit Rating provides detailed information on Credit Rating, Repair Credit Ratings, Free Credit Ratings, UK Credit Ratings and more. Credit Rating is affiliated with Bad Credit Repair
0 comments:
Post a Comment