A country, a company or an individual has a credit rating based on his previous record of getting any credit from a bank or any other financial institute. The credit rating is given by the credit bureaus that tell the worthiness of a person in terms of credit. Through credit rating a bank or a [...]
A country, a company or an individual has a credit rating based on his previous record of getting any credit from a bank or any other financial institute. The credit rating is given by the credit bureaus that tell the worthiness of a person in terms of credit. Through credit rating a bank or a financial institution can easily find out if the person is capable of paying back the loan or even the interest rate is dependant on the credit rating of the person. There are two types of credit rating; Sovereign credit rating and corporate credit rating. Sovereign credit rating is the credit rating related to a particular country. The Sovereign credit rating depicts the favourability of investment in that country. Luxemburg, Switzerland and Norway are among the countries having the highest credit rating which makes them a big favourite. On the other hand as the name suggests corporate credit rating is the credit rating that is related to a corporate firm. The corporate credit rating ranges from AAA to D where AAA shows the best figures. The corporate credit rating is given by the credit rating agencies and the credit rating less than BBB is considered to be worthless.
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