credit rating agencies and corporate bonds

Credit rating agencies are independent companies that assess the creditworthiness of borrowers, such as governments or corporations, by assigning them a credit rating. This rating reflects the agency's opinion of the borrower's ability to repay its debt obligations. Corporate bonds, on the other hand, are debt securities issued by corporations to raise capital. When a company issues a corporate bond, it promises to pay periodic interest payments to bondholders and repay the principal amount at maturity. Credit rating agencies play a crucial role in determining the credit quality of these corporate bonds, helping investors make informed decisions about investing in them.

Explore

Requires login.