Corporate Credit Rating ScaleCredit rating scale for companies
What are the differences in credit rating between countries and rating firms? Ultimately, the UK is expected to loose its sought-after AAA rating this year. A lot of analysts believe that at least one of the three major rating firms - Moody's, Fitch or Standard & Poor's - will consider the UK to be at greater credit risks than the five originally rated, in reaction to the Chancellor's acknowledgement in the fall declaration that the savings measures will last at least eight years until 2018.
The UK received a wake-up call last year from Fitch when the rating outlook was revised to downgrade, making it the second rating firm to endanger the coveted AAA rating after Moody's took the same step. That signaled a "slightly more than 50% chance" that Britain would loose its AAA rating from Fitch in the next two years.
Simultaneously with the change in the UK guidance to a " bad " one, Moody's made a number of revisions, among which upgrades for Italy, Malta, Portugal, Slovenia, Slovakia and Spain. Moody's also said at the outset that France and Austria would follow the same destiny as Great Britain, but that their prospects would change to negativ.
In October last year, Standard and Poors (S&P) lowered Spanish Treasury debt to BBB-, only one mark above June's June rating. In addition, S&P has added a "negative outlook" to its rating which warns of a further possible rating down in the middle run. Only a few and a half weeks previously, Moody's had reduced its view of Cypriot Treasuries and lowered it by one level from B3 to B3.
According to the rating firm, the key factors in its choice were fragility and weakness of banks: So who are the rating companies? There are three major agencies: Moody's, Standard & Poors and Michael Ford. This means that rating firms help to determine a fairly priced commercial obligation contract, such as a treasury gilt, once it has been granted.
Rating firms were criticized because they had too much influence in nervous market during the credit crunch. The loss of your rating or downgrade can be lethal to your country's capacity to lend cash in the market. From today, thanks to the three major agents, we can provide you with evaluations of destinations all over the globe.
Today all credit scores have been upgraded. You can find the rating for earlier last year and 2011 update in the table so you can see how the rating has evolved over the years.