bond rating - shemae.pptx - Bond Ratings 1 What are Bond Ratings Bond ratings are representations of the creditworthiness of corporate or government

bond rating - shemae.pptx - Bond Ratings 1 What are Bond...

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Bond Ratings 1
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What are Bond Ratings? Bond ratings are representations of the creditworthiness of corporate or government bonds . The ratings are published by credit rating agencies and provide evaluations of a bond issuer’s financial strength and capacity to repay the bond’s principal and interest according to the contract. The higher the rating the less likely an issuer will default. 2
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Three Chief Independent Ratings Agencies: 1. Standard & Poor's Corporation 1860 - Henry Varnum Poor began supplying European investors with financial information on their holdings in the developing infrastructure of America. 3
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Three Chief Independent Ratings Agencies: 2. Moody’s Investor Services 1909 – John Moody published a book of Railroad Investments that included concise analysis of their relative investment quality. 4
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Three Chief Independent Ratings Agencies: 3. Fitch Ratings 1913 – John Knowles Finch published “Fitch Bond Back” and other books on financial markets. Fitch is credited with introducing the AAA through D rating system now used.
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