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Fitch Ratings


Fitch Ratings Inc. in an international credit rating agency.

Together with Moody's and Standard & Poors, Fitch is one of the largest credit rating agencies in the world.

Fitch Rating was founded in 1913.

Credit rating agencies make risk assessments of financial instruments like:

  • Government bonds
  • Big corporations bonds
  • Preferred stocks
  • Mortgage backed instruments

Credit Ratings give an asessment to financial instruments. For example, an “investment grade” asset can have the following ratings:

  1. AAA The highest rating.
  2. AA
  3. A
  4. BBB

Fitch uses the symbols + and - to make smaller adjustment to it's ratings. For example, AA+ is better than AA.

A credit rating is an assessment of the financial capacity of an entity (corporation or government institution) to pay it's financial obligations. Common stocks do not constitute debt: they are not subject of credit ratings. Credit ratings apply to debt securities like bonds.

Credit ratings can be applied also to:

  • Corporations
  • National governments
  • Financial institutions
  • Insurance companies
  • Municipalities

It is considered that an institution with a better rating (AAA) has a lower default risk than an institution with a worse rating (BBB).

Fitch ratings for selected countries:

  • Light blue represent countries with good ratings
  • Violet represents countries with ratings near to BBB
  • Red represents countries with bad credit ratings (CCC)

See also

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en/fitch-ratings.txt · Last modified: 2018/02/26 07:09 by federico