Country’s progress emanates to a good economic conditions. Through economic condition of the country, foreign investors will know where they capitalize and build their respective businesses. There were plenty of credit rating agencies that assess, and measures economic conditions of the country. Likewise, Credit rating was helpful for the country that used to know the financial standing and obligation. As such, it is important that investors knows about the status of the country in order to contemplate and decide if they can lend money to it. A lot of credit rating agencies out there with same purpose and objective that is to determine the creditworthiness of a country. However, government makes it sure that transparency must be exposed to …show more content…
The most well-known credit rating agencies are S&P, Moody’s and Fitch rating services (Sovereigns Rating List, n.d). The S&P and Moody were originated from U.S., and Fitch arose from two headquartered in New York and London. The S&P and Fitch used letters and signs such as AAA, AA+, AA, AA-, etc., while the Moody’s used letters and numbers such as Aaa, Aa1, Aa2, Aa3, etc. (Philippines | Credit Rating, n.d.). Salmon (2011) described that credit rating symbols have varied meaning which state the opinion whether on positive and negative or stable outlook on the financial obligation. Hence, credit ratings were continuously appraising the credit value of a borrower on the specific obligation or monetary …show more content…
Batino and Yap (2014) mentioned that the big three agencies, such as Moody’s, S&P, and Fitch rates have a positive outlook and signifies the Philippines higher than other countries like Spain, Russia, Brazil and India. This will only showed that people should give attention to the sovereign debt of the country, and address it to solve problems especially in reducing poverty. Perhaps, it is important to have this credit rating in assessing the risk of financial instruments and give investors the idea on the stability of financial asset (Credit Ratings by S&P, Moody’s, and Fitch Ratings,
This protected the bank because it ensured that by the time the mortgage is up, they would have their loan and interest fully paid
4. DATA SOURCES AND DESCRIPTIVE STATISTIC 4.1 Data Sources This paper uses the annual data from 14 countries in Asia which have already established capital market in their countries in 8 year period times between 2005 and 2012. The countries are Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines, China, South Korea, Taipei, Mongolia Bangladesh, Bhutan, India, and Sri Lanka. All data is cover countries at East Asia, South East Asia, and South Asia which is taken from Asian Development Bank publication: Key Indicators for Asia and the Pacific 2013.
U.S. Grant 1869-1877 Credit Mobilier, Whiskey Ring-1872/1875. 7. In the Credit Mobilier affair, members of the Credit Mobilier construction company gave stock and cash bribes to congressmen to avoid the discovery of immense profits from transcontinental railroad subsidies. In the Whiskey Ring, federal revenue agents and whiskey producers plotted to divert millions in government tax revenues. These instances showed the corruption of alliances between big business and government and made Americans distrustful of politicians’ motives.
Commercial bail bond agencies have been around in the United States since the late 1800s. With four states in the United States that have already banned commercial bail bond agencies, one wonders if commercial bail bond agencies are really needed, and if they are important when it comes to pretrial release. This paper will explore bail bond agencies history and how they became what they are today. The main purpose of this paper is to explore the ways that commercial bail bond agencies are important to pre-trial release, and explore the research and statistics that currently explain why commercial bail bond agencies are important.
In the article, “ The effect of bank credit on asset prices: Evidence from the Japanese real estate boom during the 1980s” it goes over on whether bank credits fuel assest process after seeing the comparision between banks losing their blue chip
James D. Scurlock produced a film, Maxed Out Debt,in 2006. It is a documentary. In this film Scurlock analyzes the monstrous training that credit card companies utilize to obtain enormous earnings diminishing customers financial lives. There are multiple interviews, giving insight on different situations, how consumer-lending companies can be negative in other people's lives. Maxed Out Debt’s displays how the modern financial industry really works.
What is a credit score? A credit score is something used to show people how well you pay people back, or how you have done so in past experiences. 7. How is a CD different from a savings
Five Credit Score Elements 1. Payment history: 35% of the total credit score. Repaying past debt is the most important factor in calculating credit scores. According to FICO, past long-term behavior is used to forecast future long-term behavior. FICO tracks both revolving loans, for instance, credit cards, and installment loans, such as mortgages or student loans.
By using personal credibility it could have given them more driving force on their side in which they can relate to the people with debt, which help the reader comprehend that they know what it feels like to be in their
Danny Schechter wrote Investigating the Nation’s Exploding Credit Squeeze, two years before the 2008 world crisis. It is said that only true crisis can lead to change, an explanation to why so many people ignored the signs. Everyone is a target to the credit industry, not only the poor or middle classes. In a consumption driven culture, it is impossible not to spend your money and get into debt. Products seem fairly cheap, companies are always suggesting that you are making “a great bargain”, “buy two and one free” and it seems that everything is always “on sale” (Schechter 357).
The reason behind this was to set security for the amount of money that was being borrowed from these “banks”. Soon the “Bills on Loan” notes became legal for all debts. In a way, it wasn’t exactly fair to people in the past, because the principal and interest payments were supposed to be paid annually, but now were extended for the first few years. Once those years had passed the payment form would be in a note of “Bills on Loan” or
In today’s world, a lot of companies are incorporating a credit score check in the application process. In some cases, this may actually be devastating. Not everyone is in debt due to carelessness, some are in debt because of not having healthcare and being unemployed. Yet a company is going to base this person 's approval on factors that they had no control over. For example, a person may have been laid off due to budget cuts and had to use their credit card to pay for their bills.
Having different accounting standards in the world is a problem for multinational public limited companies and investors in order to be able to compare and evaluate financial statements (Doupnik & Perera, 2009). Due to the economic and financial scandals and meltdown in recent years, the pressure has been increased on some countries such as United States. Therefore, it must eliminate the gap between the International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP). The world of accounting diversity will have consequences on such changes, and the standard convergence of US GAAP with International Financial Reporting Standards also largely affect corporate management, investment, stock market, accounting personnel and accounting standard setters. In addition, the convergence of accounting standards will change the approach for international accounting harmonization to CPA and CFO, it affects the quality of international accounting quality standards and the effort made toward GAAP and IFRS convergence
Definition of emerging market In terms of investors emerging markets are used to describe developing countries, in which investment would be expected to achieve higher returns but it would be ac-companied by a higher risk. Emerging markets are between developed markets. “Even index providers cannot agree on precisely what constitutes an emerging mar-ket. MSCI, the US company that introduced the benchmark MSCI Emerging Market index in 1988, defines an emerging market in terms of the number of quoted compa-nies of a certain size and “free float” (the proportion of shares available for ordinary investors to buy), plus a market’s openness to foreign ownership and capital.
The literature review stated that all the good credit companies faced problem in obtaining finance from banks in the period of financial crisis due to which many of their projects failed. The organisations did not have enough money for financing operations of the organisation and the newcomers in the hospitality sector were not able to raise finance to start their new business due to credit crunch (Tirados & María,