A credit ratings table is a table containing qualitative and quantitative information of a debtors credit worthiness, as Fitch Ratings indicates. This involves the evaluation of debtors possibilities of paying back the debt and going into default.Continue Reading
Credit rating information is useful for individuals who purchase bonds given by governments and organizations. This helps in determining the likelihood of the government paying its bond obligations. Information concerning credit rating is generated by credit rating agencies. The rating is done by examining debtors history and economic trend. A poor credit rating means there are high chances of an organization or a government failing to pay the debt, as Fitch Ratings explains, while a high credit rating indicates a high likelihood of a debtor paying the debt.
Sovereign credit ratings tables contain information that indicates the level of risk of investing in a certain country. It is that government's credit rating, and it helps foreign investors make investment decisions, according to Fitch Ratings. Corporate credit ratings involve the rating of corporations and organizations by credit rating agencies such as the Standard and Poors, Fitch Ratings and Moodys. Letters are used to indicate the rating, and higher grades represent a lower likelihood of default.
Long-term and short-term ratings refer to the possibilities of the rated entities entering default within a certain period of time. Short term ratings help institutional investors to manage monthly credit portfolios with the involved derivatives, while long-term ratings indicate the likelihood of default beyond one year, explains Fitch Ratings.Learn more about Credit & Lending