Rating methodologies

Rating methodologies are systematic ways of assessing the quality, creditworthiness, or risk of an entity, like a company or country. They analyze financial data, economic conditions, management, and other factors to produce a score or letter grade. This helps investors, lenders, and stakeholders make informed decisions by providing an objective evaluation. Different agencies may use various models, combining quantitative data (numbers and financial indicators) and qualitative factors (management quality, market position). Ultimately, these methodologies aim to deliver a consistent, transparent assessment of risk to facilitate lending, investment, and economic planning.