World Credit Ratings

Credit ratings are evaluations of the creditworthiness of a borrower, in particular, their ability to repay debt. These ratings are expressed in letter grades, such as AAA, BBB, and so on, and provide investors with a quick reference to assess the risk associated with investing in bonds or other debt instruments issued by companies, governments, or other entities.

The ratings range from high-grade (AAA), indicating minimal credit risk, to low-grade (C or D), indicating substantial risk of default. These ratings influence the interest rates that borrowers must pay to attract investors; higher-rated borrowers enjoy lower interest rates due to perceived lower risk.

Credit ratings are assigned by credit rating agencies, the most prominent of which are Standard & Poor's (S&P), Moody's, and Fitch Ratings. These agencies evaluate various factors, including the financial health of the issuer, the stability of their income streams, the economic environment, and historical performance.