This shows you the differences between two versions of the page.
Both sides previous revision Previous revision Next revision | Previous revision | ||
en:fitch-ratings [2015/10/14 10:42] federico |
en:fitch-ratings [2018/08/01 07:43] (current) federico |
||
---|---|---|---|
Line 1: | Line 1: | ||
- | ====== Fitch Ratings ====== | + | ====== Fitch Ratings Scale ====== |
{{ :es:fitch.png?nolink|}} | {{ :es:fitch.png?nolink|}} | ||
Line 5: | Line 5: | ||
Fitch Ratings Inc. in an international [[en:credit-rating-agency|credit rating agency]]. | Fitch Ratings Inc. in an international [[en:credit-rating-agency|credit rating agency]]. | ||
- | Together with Moody's and Standard & Poors, Fitch is one of the largest credit rating agencies in the world. | + | Together with [[en:moodys|Moody']]s and Standard & Poors, Fitch is one of the largest credit rating agencies in the world. |
Fitch Rating was founded in 1913. | Fitch Rating was founded in 1913. | ||
Credit rating agencies make risk assessments of financial instruments like: | Credit rating agencies make risk assessments of financial instruments like: | ||
- | * | + | |
* Government bonds | * Government bonds | ||
* Big corporations bonds | * Big corporations bonds | ||
* Preferred stocks | * Preferred stocks | ||
* Mortgage backed instruments | * Mortgage backed instruments | ||
+ | |||
+ | ===== Scale ===== | ||
+ | |||
Credit Ratings give an asessment to financial instruments. For example, an "investment grade" asset can have the following ratings: | Credit Ratings give an asessment to financial instruments. For example, an "investment grade" asset can have the following ratings: | ||
Line 36: | Line 39: | ||
It is considered that an institution with a better rating (AAA) has a lower default risk than an institution with a worse rating (BBB). | 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 Rating Scale: | ||
+ | |||
+ | **Investment Grade**: | ||
+ | * **AAA**: the best grade. This grade is given to stable and reliable companies. As of 2018, in US only Microsoft and Johnson & Johnson are rated AAA | ||
+ | * **AA**: these are quality companies that have very strong capacity to meet it's financial obligations but a little more riskier that AA companies. | ||
+ | * **A**: Strong capacity to meet it's obligations. This capacity may be more vulnerable to changes in economic conditions. | ||
+ | * **BBB**: these are medium class companies. There is a low expectation of interrupted payments, but changes in circumstances are more likely to impact it's capacity. | ||
+ | |||
+ | ** Non-investment grade ** | ||
+ | The probability that the company will repay it's debt is deemed to be speculative. | ||
+ | |||
+ | * **BB**: company's payment capacity is prone to changes in the economy. | ||
+ | * **B**: the financial situation of the company varies noticeably. | ||
+ | * **CCC**: the current situation of the company is vulnerable. The company depends on favorable conditions to meet it's commitments. | ||
+ | * **CC**: very vulnerable | ||
+ | * **C**: the company or issuer can be in bankrupcy, but it's still paying it's obligations. | ||
+ | * **D**: the company has defaulted, and Fitch believes it will default most of the future obligations. | ||
+ | * **NR**; Not Rated | ||
Fitch ratings for selected countries: | Fitch ratings for selected countries: |