Definitions for "Credit Ratings"
Independent evaluations of the credit of companies and governments and the ability of these institution to repay debt obligations. Examples of credit rating agencies include Standard and Poor's, Moody's, and Fitch IBCA.
In order to help us assess the credit worthiness of a bond issuer, there are agencies that study the financial strength of bond issuers, and assign credit ratings to them. The two major rating agencies are Moody and Standard & Poors. These agencies assign ratings to bond issues so that investors can determine the credit worthiness of an issue without having to do the financial analysis on their own. For a more detailed list of ratings and their meanings, please see the section on safety.
Ratings provided by specialist credit agencies which assess the likelihood of companies being able to meet their financial obligations. Ratings range from AAA (the most secure) to D (the least secure); the greater the credit risk the lower the rating.