Credit Rating

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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,

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