Rating agency - Financial definition
Financial acronyms
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Concise definition of the term rating agency
A rating agency is an independent company which assesses the capacity of debt issuers to meet their financial obligations (repayment, payment of interest) with respect to the debt they issue.
Comprehensive definition of the term rating agency
As a result of their assessment, the rating agency will assign each rated debt instrument a grade from its rating scale which reflects its appreciation of the risk associated with investing in the rated issue.