Bond rating includes bonds issued by companies and government, and bond rating is a letter-based credit scoring scheme, used to judge the quality of a bond and its creditworthiness, that is, it is used as a way to measure the creditworthiness of a bond, which corresponds to the borrowing cost of the issuer.
Classification of property rights
The classification of equity shares issued by a company is called an equity classification. Equity is also referred to as shareholder equity, or private corporate equity. Equity represents the amount of money returned to the shareholders of the company after all assets are liquidated and all debts of the company are paid off in the event of liquidation.
preferred stock rating
Preferred stock is also referred to as preferred stock, it is the portion of a company’s stock in which its dividends are distributed to shareholders prior to the issuance of common stock dividends.
Classification of commercial papers
The classification of commercial paper issued by manufacturers, financial companies, banks, and financial institutions is called the classification of commercial paper, and commercial paper is a form of short-term, unsecured debt that companies usually issue to finance payroll, payables, inventory and other short-term obligations. Maturity on commercial paper is several days, rarely more than 270 days.
Fixed Deposit Classification
Fixed deposits refer to unsecured medium-term loans, and the classification of these programs is called the classification of fixed deposits, and the fixed deposit is an investment tool offered by banks and non-bank financial companies to their customers to help them save money, so that a large amount of money can be invested at a predetermined interest rate for a specified period using Fixed Deposit Account. Banks offer different interest rates for different fixed deposit accounts.
Borrowers’ rating is referred to as the borrower’s credit rating. A borrower’s rating is the highest security rating for a borrower’s long-term debt. “Borrowing” refers to a group of one-type loans offered by lenders on a single date, and can have a single interest period.
The rating of individuals
The rating of individuals is called an individual’s credit rating, and the credit scores that are usually assigned to individuals are expressed in numbers from 850 to 300.
Structured commitment generally refers to a security backed by assets. Structured liabilities are a form of debt. This type differs from bonds, fixed deposit programs and commercial paper.
Credit rating agencies have assessed the risks associated with structured commitment transactions with the main confidence in the cash flows arising from the asset, Which will be enough to meet the payments that the investors are obligated in the worst case.
A sovereign rating is a country’s rating, considered when a loan is made or when some major investment is signed in a country, a sovereign credit rating is an independent assessment of the creditworthiness of a country or a sovereign entity, and sovereign credit ratings can give investors insight At the level of risks associated with investing in the debt of a particular country, including any political risks.
Credit ratings are used by investors and brokers such as investment banks, debt issuers and companies for various reasons, including the following:
Both institutional and individual investors use credit ratings to assess the risks related to investing in a particular issue, especially with regard to portfolios.
Brokers such as investment bankers use credit ratings to assess credit risk and do pricing related to debt issues.