Credit Rating
Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. (The Economic Times).
Credit ratings represent an attempt to estimate the level of risk involved in investing in or lending money to a particular business or other entity, including national and state governments and government agencies. A high credit rating indicates that, in the rating agency's opinion, a bond issuer is likely to repay its debts to investors without difficulty. A poor credit rating suggests it might struggle to make its payments or even fail to make them. (Investopedia)
Credit Ratings are issued by credit rating agencies (CRA) like Standard & Poor's, Moody's and Fitch, just to name the most important ones. They assign ratings for several issuers (e.g. film , nations and local governments) of specific types of debt. Credit ratings try to capture the creditworthiness of corporations and provide an ordinal ranking of default risk across firms. (Credit Ratings and the impact on Capital Structure)
The Economic Times. Mutual-Fund.What is “Credit Rating”, Retrieved from: https://economictimes.indiatimes.com/definition/credit-rating
Julia Kagan (2023, August 15). Credit Rating: Definition and Importance to Investors. Investopedia. Retrieved from: https://www.investopedia.com/terms/c/creditrating.asp
Christian Kronwald (1. Auflage 2009) Credit Rating and the Impact on Capital Structure. Books Google. Retrived from:https://books.google.com.ua/books?id=CzjS5YV5nK8C&q=%22credit+rating%22&redir_esc=y#v=snippet&q=%22credit%20rating%22&f=false