Ratings Simplified

Ratings are an evaluation of the financial status or credit worthiness of an organization or a country. Credit rating agencies consider financial and non-financial aspects to predict the debtor’s ability to pay back the debt. A credit rating represents the evaluation of the credit rating agency of qualitative and quantitative information for the debtor; including non-public information obtained by the credit rating agencies’ analysts. This information is critical for companies, banks, VC and other financial services organizations to decide on investing in an organization or a country.

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