What is a credit rating?

"Credit rating" is an independent assessment of the creditworthiness of a company, institution, government body, country, or investment fund. This is expressed in symbols, ranging from AAA (triple-A, the highest creditworthiness) up to and including D. It indicates how likely it is that the debtor will meet their financial obligations.

Credit ratings are provided by independent credit rating agencies, such as Moody's and Standard & Poor's, which analyse both the current creditworthiness and the future credit prospects. This assessment helps investors to better understand the risks of an investment and make decisions based on the creditworthiness of the involved party.