Financial rating is a concept that relates to the financial markets: companies and states. However, there are equivalent in two areas: the field of unlisted companies (ie, risk assessment receivable – under the counterparty risk unlike credit ratings, evaluation is an automatic notation made on the basis of information financial and legal). Individuals, rather they designate under the term credit score, which is a rough measure of the ability to repay.
In buying Cheap Condos for Sale in Singapore, this type of score is determined by each bank according to its own credit policy and risk assessment, there are countries, including the United States, where there are specific rating agencies for this type of risk. The criteria used in this case, income, existing credit and credit history
The credit rating of a debtor’s interest in the overall ability of the debtor to meet its commitments. This notation, however, gives information on the present situation of the debtor. A single operation (such as a loan or a bond issue) will be denoted by example: at the conclusion of a new loan for Cheap Condos for Sale in Singapore (a new loan changes the balance sheet structure of the borrower and therefore may affect its ability to repay).
When the operation has a feature that makes the chances of repayment good or worse and the loan is secured by a pledge, mortgage or other security (reducing the loss of default). The mortgage loan is structured (reduction of the probability of default and loss on default) and the loan is subordinate (increased probability of default and loss on default).
The unspecified rating measures the ability to pay in general, while the foreign currency rating measures the ability to pay in foreign currency. Thus, the rating of a loan in U.S. dollars of a European society depends on access to the source of U.S. dollars.
In addition to the features involved in the analysis of the creditworthiness of the State itself (including the impact of fiscal capacity on its ability to pay) and its consequences the sovereign rating may also affect the rating of local businesses and their debt limits.
Rating agencies may give a poor rating to a company working in a given country, regardless of its financial strength to overcome limitations of monetary, fiscal and budgetary policy. Credit insurance companies use these ratings to assess risk for export operations.
Assessment of country risk, aims to estimate the average credit risk of a country’s companies. To do this, it uses macroeconomic, financial and political data. Its originality is to take into account the experience of Coface in two dimensions: the payment experience on the companies registered in the country and understanding of the business environment in the country.