
Ratings methodology
Rating methodology refers to the systematic process used to evaluate and score something, like a company's creditworthiness or a product's quality. It involves analyzing relevant data, such as financial health, performance metrics, or user feedback, to assign a standardized rating. This rating helps stakeholders understand the level of risk, reliability, or value associated with the subject. The methodology ensures transparency, consistency, and objectivity in how ratings are determined, allowing users to make informed decisions based on well-founded assessments.