Corporate Credit Rating

What if you could consolidate your reputation into one grade on a scale of A+ to C-? Analysts would be in charge of assessing your past actions and then assigning a grade to you on the likelihood that you’ll do what you promise to do in the future. Sounds like a Phillip Dick novel.

Well, in finance, this exists. In the debt markets, investors rely on corporate credit ratings to help measure the likelihood that a company will pay back its debts. A corporate credit rating is listed on a scale by credit analysts who monitor a company’s financial conditions and past payment actions, and assign a grade that informs investors of the safety and security of a firm’s debt.