Term:RATINGS AGENCY

An agency that rates the debt instruments of governments, parastatals and companies. There are three primary ratings agencies – Fitch, Standard & Poors and Moodys. Their ratings have a major impact on the interest cost of debt. Thus, when South Africa was downgraded in early 2017, it had a direct impact on its cost of borrowing. Obviously, the country should do everything in its power to reverse these downgrades.

Disclaimer - All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index