Credit Agency

When you apply for a mortgage or a credit card, the potential source of credit will run your credit score and pull your credit report. They get this information from a credit agency.

When an investor is interested in buying bonds from companies or sovereign nations, they will eye the bond ratings provided by credit agencies.

These companies gather an incredibly large amount of information about borrowers, and based on their financial conditions and existing debt obligations, will assign a numerical or grade value that determines the creditworthiness of the potential borrower.

Credit agencies include Fitch, Moody’s, and Standard & Poors for corporate and sovereign debt. Transunion, Equifax, and Experian are the three largest consumer agencies.