Credit Rating Agency
a.k.a. Rating agency, CRA
A firm that grades how creditworthy governments, companies and bonds are.
In plain English
A firm that grades how creditworthy governments, companies and bonds are. The big three are S&P, Moody's and Fitch.
Credit rating agencies study borrowers' finances and publish ratings. S&P Global, Moody's and Fitch dominate the business.
Their influence is huge: many funds may only hold investment-grade bonds, so a downgrade can force selling. They were heavily criticised after 2008 for giving top ratings to mortgage securities that later collapsed.
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