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IN THE KNOW: top 3 major credit rating agencies


MANILA, Philippines—The top three major credit rating agencies—Moody’s Investors Service, Standard & Poor’s and Fitch Ratings—assess the ability of a country to manage its debts.

The ratings assigned by these international credit watchdogs are adjusted depending on their perceived credit worthiness of a country. The ratings also take into account overall economic environment and political conditions.

Investors often consider credit ratings when evaluating the general investment climate of a country. An investment grade rating is expected to allow a country to attract more job-generating foreign direct investments.

Moody’s, S&P and Fitch are the nationally recognized statistical ratings organizations by the United States Securities and Exchange Commission.

Each rating agency has its own methodology in measuring credit worthiness and uses a specific rating scale for its credit rating opinion.

Fitch’s ratings are based on established criteria and methodologies that are continuously examined and updated. The firm’s opinions are forward-looking and include views of analysts on future performance.

Fitch, dual-headquartered in New York and London, was founded by John Knowles Fitch as Fitch Publishing Co. in 1913. It started as a publisher of financial statistics.

In 1924, it first introduced the “AAA” (highest credit quality) to “D” (default) ratings scale as the demand for independent analysis of financial securities grew. Inquirer Research

Sources: Inquirer Archives, Investopedia, websites of Fitch, Moody’s and S&P

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Tags: credit rating agencies , credit-worthiness , debts , fitch ratings , Moody’s Investors Service , Rating agencies , Standard & Poor's

  • Saint Luci

    These rating agencies are also the same companies that rated the MBSes AAA way back in 2008. Thena few weeks after, most of MBSes came tumbling bringing down with it the entire global financial system.

    To these rating agencies, lokohin ninyo ang lelong ninyong panot. Di na dapat kayo paniwalaan.

  • OFW_Investor

    There is a saying “When buying jewelry and dont know anything , know the jeweler”.
    The same holds true for Property Developers

  • Pwe Jade

    Beware of the latest scam in QC. Townhouses, renovated houses near major shopping malls, groceries and main thoroughfares.

    What’s more – falsified documents, illegal and unsafe structures and negative “vibes” that only the Pujeda Construction of Tierra Pura, Culiat can deliver.

    When dealing with this developer, check her documents – if shown, check the background of the documents. Trace the “real owners”.

    Ask around the neighboorhood or the Homeowners or simply call the Barangay to be sure.

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