Nationally Recognized Statistical Rating Organizations (NRSROs)

Nationally Recognized Statistical Rating Organizations (NRSROs) are firms that assess the creditworthiness of entities and financial instruments, such as bonds. They provide ratings that indicate the likelihood of default, helping investors gauge risk. Regulators and financial markets recognize these organizations for their credibility and reliability. Common examples include Moody's, Standard & Poor's, and Fitch Ratings. Their ratings influence borrowing costs, investment decisions, and overall market confidence, making them crucial players in the financial system.