Credit ratings (See Chapters 8 and 26 of the Vernimmen)

Credit ratings are the result of a continuous assessment of a borrower’s solvency by a specialised rating agency (Moody's, Standard & Poor's, Fitch), by banks for internal purposes to ensure that they meet prudential ratios, and by credit insurers (e.g. Coface, Hermes, etc.; see credit insurance). This assessment leads to the award of a credit rating reflecting an opinion about the risk of a borrowing. Credit ratings can be investment grade or speculative grade. Credit ratings are also called ratings.