Credit Rating Agencies (CRAs)

Credit Rating Agencies (CRAs) are organizations that assess the creditworthiness of borrowers, such as companies and governments, by evaluating their ability to repay debts. They assign ratings—like AAA, A, or B—that indicate the level of risk for investors. Higher ratings suggest lower risk, while lower ratings indicate higher risk. These ratings help investors make informed decisions about lending or investing their money. CRAs play a crucial role in financial markets, influencing interest rates and funding costs, and they can impact the overall economy by affecting access to capital for various entities.