Rating & Score of Debt
Posted by JUTAWAN TERKENAL | February 24th, 2010 in Definition | No Comments »

Rating: Within fixed income, ie, bills, notes, bonds or debentures, the ratings are used to measure the creditworthiness of the investor. This solvency concerns that the issuer will pay us the promised interest and in the end we return the borrowed money. To perform the classification using a series of letters: AAA mean maximum solvency and C warns of a high risk of default. Ente these limits there is a series of letters that indicate different degrees of creditworthiness. Investors around the world rely on this rating when deciding to buy this or that issue. It is most often purchased or sold only according to the classification.
Credit Score: Action of analyzing a company’s financial situation in order to establish their ability to cover debts and obligations in the short term or long term. These credit ratings are generally made by specialized firms, domestic or foreign.
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