Corporate Credit Ratings

Corporate credit ratings assess the financial health of a company and its ability to meet debt obligations. Agencies like Moody’s or Standard & Poor’s analyze factors such as profitability, debt levels, and economic conditions to assign a letter grade (e.g., AAA is very safe, while B is more risky). These ratings help investors and lenders understand the risk involved in lending money to or investing in the company, influencing interest rates and borrowing costs. Essentially, they act as a financial “report card” indicating the company's creditworthiness and stability.