Glossary

A credit rating is a score assigned to a borrower (individual, company, or government) by a credit rating agency, evaluating their creditworthiness. 🤝

It helps lenders and investors understand the likelihood of the borrower repaying their debt. Company ratings range from AAA (highest) to D (lowest), and the higher the rating, the lower the risk of default.

For example, a company with a AAA credit rating is considered very low risk and likely to repay its debt, while a company rated D has already defaulted on its debt.

Fun fact: Credit rating agencies are often referred to as the "Big Three". 🌟 These are Standard & Poor's (S&P), Moody's, and Fitch Ratings. Together, they dominate the global credit rating market, with S&P and Moody's holding approximately 40% each, and Fitch covering the remaining 20%.