Major agencies like S&P Global , Moody’s, and Fitch Ratings use standardized letter scales to communicate risk: : Indicates relatively low to moderate default risk.
: A higher rating lowers the cost of borrowing by allowing access to cheaper interest rates. credit rating scores
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: Moderate credit quality with some speculative characteristics. Major agencies like S&P Global
: Ratings bridge the information gap, helping them decide which bonds or securities align with their risk tolerance.
Agencies conduct periodic —also known as account monitoring—to ensure ratings remain accurate as financial conditions change.