all sign a term such as credit rating.It is most commonly used to describe the banks, but the concept can be applied to the physical, entity and even the country.
What is the credit rating of an individual - it is clear.This is an opportunity to return the person received from banking institutions loans.This indicator is calculated by banks to determine the feasibility of a loan to a specific person.
If you zoom in, we will get the credit rating of the company.It will be interesting to companies, partners and investors.
What is the country's credit rating?
This same concept has a much greater data load, if you apply it to a more difficult economic organizations, such as the country.Credit ratings around the world reflect the risk of investment in the infrastructure of the state.Based on this figure, it is possible to draw conclusions about whether the state to meet its debt obligations.Investors making decisions on major investments in the company or the industry, must take into account the current value of the credit rating.
But at the same time, in its essence it is a forecast.He does not give an absolute guarantee of return on investment, and therefore can not be an absolute measure of reliability.When making decisions about investing credit rating should be considered in conjunction with other factors, confirming the feasibility of such investments.
Who is authorized to determine credit ratings?
we study performance can be national and international .The first determined by national rating agencies.In Russia it is "Rus-Rating" "Expert RA", "National Rating Agency" and others, in Ukraine - "Credit Rating" and "Standard Rating".They have the authority only within the country.
much more credible cause data from international rating companies:
- Moody's.
- Standard & amp;Poor's (S & amp; P).
- Fitch.
They were created in the United States at the beginning of the last century, but gained world recognition and reached the international level.
These organizations define the international credit ratings of countries, industries, enterprises, banking institutions, issues related projections, as well as engaged in the analysis of financial markets.
Designation credit rating
Each rating agency has determined its scale notation.The value of the basic concept of a literal definition, intermediate categories on a scale of S & amp; P and Fitch emit signs "+" and "-" to meaningfully differ little from the figures on the scale of Moody's.
| Moody's | S & amp; P | Fitch | Decoding values |
| Aaa | AAA | AAA | excellent credit quality |
| Aa1 | AA + | AA + | HighCredit Quality |
| Aa2 AA AA | |||
| Aa3 AA- | AA- | ||
| A1 A + | A + | average reliability (increasing) | |
| A2 | A | A | |
| A3 A- A- | |||
| Baa1 BBB + | BBB + | average reliability (declining) | |
| Baa2 BBB | BBB | ||
| Baa3 | BBB- BBB- | ||
| Ba1 BB + | BB + | possibility of speculative operations | |
| Ba2 BB BB | |||
| Ba3 | BB- BB- | ||
| B1 | In + | In + | high level of speculation |
| B2 | In | In | |
| B3 B- B- | |||
| Caa1 | CCC CCC + | excessive risk | |
| Caa2 | CCC | Sverhspekulyativnye operation | |
| Saa3 | SCS | preddefoltnom state | |
| Ca | SS | ||
| With | |||
| C | D | DDD | Defaulted |
| DD | |||
| D |
What is the forecast of the rating agency?
Consider the country's credit rating stands together with the associated projections that give the same agency.There are four types:
- Positive outlook - it means that in the near future, the rating is likely to increase.
- Stable - portends changes.
- Negative - likely credit rating downgrade.
- In the case where there is the same probability as the lowering and raising the index, define paced forecast.
How has the credit rating of Ukraine and Russia in the past year?
in 2014-2015 in these countries, there are events that trigger decrease in this indicator.And the first effects are already visible.
credit rating of Russia was downgraded Moody's c Baa1 to Baa2 in late 2014.In addition, there is the possibility of its further reduction - negative outlook.The agency Standard & amp;Poor's also lowered the credit rating of Russia from BBB- to BB + in foreign and from BBB to BBB- in local currency.Fitch's early 2015 produced very predictable decline from BBB to BBB-, still with the same negative outlook.
Ukraine, according to international rating agencies, is in preddefoltnom condition.In early 2015, Fitch has established for it the value of the SS with a negative trend.The credit rating of Ukraine in foreign currency, according to Standard & amp;Poor's, at the end of 2014 has been lowered from the level of CCC to CCC-.
Why is this happening?Credit rating is reduced in proportion to the increase in their foreign debt.
Can you trust the rating agencies?
In times of prosperity of corruption at all levels, the question arises: "How accurate are these rating organizations? Can we trust them?"Indeed, "the twisted 'credit rating can strongly influence the situation in the world's major investment and direct investment flows in the wrong direction.If these ratings, which were used by the party investor would be false, then it calls into question the relevance of investments, and sooner or later will be displayed on profits.
above rating agencies over the years worked hard, earning a world authority and trust.Now their job is to supply as much as possible accurate and up to date information in order to maintain their status.Assigned international credit ratings in any way it is impossible to falsify, so they can be used as a reliable source of information for market analysis.
