1、 https:/crsreports.congress.gov August 31, 2021Credit Rating Agencies: Regulation and Recent DevelopmentsCredit rating agencies (CRAs) provide investors with evaluations of the creditworthiness of debt (i.e., how likely a debt is to be repaid in full) issued by a wide spectrum of entities, including
2、 corporations, sovereign nations, and municipalities. Their ratings are typically a letter hierarchical format (e.g., AAA as the safest, and progressively lower gradesAA+, AA, AA-, A+, A, A-, BBB, all the way down to Drepresenting greater risk). For regulatory and investment purposes, ratings are pl
3、aced into one of two broad categories. Investment grade debt is rated BBB- or Baa3 (depending on the CRA) or higher. Noninvestment grade debt (also known as “high yield,” or “junk” bonds) has a rating below these benchmarks and is generally associated with higher risk firms. This In Focus examines C
4、RAs, their regulation, and recent developments. Earlier Regulation Adopted by the Securities and Exchange Commission (SEC) in 1975, the designation of a nationally recognized statistical rating organization (NRSRO) was originally used as a part of the agencys determination of capital charges on diff
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