Very strong capacity to meet financial obligations. The main goal of the S&P credit rating is the assessment of a security’s default probability.Įxtremely strong capacity to meet financial obligations. S&P issues both long-term and short-term bond ratings. The company covers more than one million credit ratings on government and corporate bonds, structured finance entities, and securities. Standard & Poor’s (S&P) is the oldest credit rating agency and one of the three Nationally Recognized Statistical Rating Organizations (NRSRO) accredited by the U.S. Non-investment grade bonds are riskier, but they offer a higher yield.īond ratings prepared by professional analysts provide institutional and individual investors with a reliable source for making investment decisions. Investment-grade bonds are considered safe investments with minimal default risk but provide minimal yields. However, all rating systems classify bond investments by quality grade (investment grade/non-investment grade/not rated) and risk (from default to highest quality). Each rating agency uses its own grading system. The three private independent rating agencies – S&P, Moody’s, and Fitch – control almost 95% of the market share of the bond rating business. The ratings are published by credit rating agencies and provide evaluations of a bond issuer’s financial strength and capacity to repay the bond’s principal and interest according to the contract. ' US Loses AAA Credit Rating After S&P Downgrade.'įair Isaac Corporation.Bond ratings are representations of the creditworthiness of corporate or government bonds. ' Moody's Long Term Ratings Definitions.' ' The US Debt Crisis and Downgraded Credit Rating has Global Implications.' ' Research Update: United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt Burden Outlook Negative.'Įuromonitor International. ' The Emergence of Modern Fixed Income Analysis,'. “ Fitch completes Algorithmics acquisition.” Securities and Exchange Commission Washington, D.C., April 15, 2009,'. White* for the ‘Roundtable to Examine Oversight of Credit Rating Agencies’ U.S. ' Moody’s History: A Century of Market Leadership.' ' What Are the Different Credit Scoring Ranges?'Įxperian.