Long-term ratings
A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting. The credit rating represents an evaluation of a credit rating agency of the qualitative and quantitative information for the prospective debtor, including information provided by the prospective debtor and other non-public information obtained by the credit rating agency's analysts.1
pyratings supports the four main rating agencies, namely
- Moody's
- Standard & Poors
- Fitch
- DBRS
The rating scales of each of these rating agencies differ only slightly (see table
below).
pyratings also supports Bloomberg ratings, whereby Bloomberg isn't an actual
rating agency. However, Bloomberg provides a composite rating, which is a blend of
Moody's, S&P's, Fitch's, and DBRS' rating for a particular security.
When working with ratings, you will get to a point where you need to do some "computations". For example, comparing different ratings across different agencies makes it necessary to translate human-readable ratings into numerical rating scores. It's always easier to compare numbers rather than plain text. The following table shows all ratings including equivalent rating scores.
