Credit Rating
An agency opinion about relative credit risk under stated criteria—not a guarantee of repayment, market value, or suitability.
A credit rating is an opinion from a rating provider about the relative credit risk of an issuer or specific obligation under that provider methodology. Ratings can differ by agency, instrument, seniority, collateral, currency, jurisdiction, and time, and they can change or be withdrawn.
Frequently Asked Questions
Does an investment-grade rating guarantee repayment?
No. Investment-grade securities can default or suffer losses, and below-investment-grade securities can repay. Ratings express relative credit opinions, not certainty.
Why can the same issuer have multiple ratings?
Different agencies use different methodologies, and individual obligations can differ in seniority, collateral, guarantees, currency, structural subordination, and recovery prospects.
What is the difference between a rating and an outlook?
A rating is the current opinion, while an outlook or watch indicates possible direction or heightened review. Neither specifies the timing or size of a future change.
Are ratings investment recommendations?
No. They generally do not address market price, liquidity, duration, currency, taxes, investor objectives, or total-return potential. Independent analysis remains necessary.