Introduction to Credit Rating-World Credit Organization
Introduction to Credit Rating
Credit rating is a traditional credit service, which is perfected by the World Credit Organization [WCO]. Applicable standard: "ICE8000 International Credit Standard System Credit Rating (Credit Rating) Standard" (https://www.ice8000.org/aenhw/gc/68.htm). Here are the terms related to credit ratings:
1. Credit rating is a credit rating in a narrow sense, which refers to the organization's repayment ability or contract performance ability.
2. Credit rating, also known as credit rating, which includes bond credit rating and subject credit rating. Credit rating is a traditional credit service. In March 2008, in order to ensure the scientificity and fairness of credit ratings, maintain fair competition in the credit rating industry, promote social integrity, reduce transaction costs, and improve human well-being, according to internationally accepted legal principles and international practices, the World Credit Organization [WCO ] (hereinafter referred to as the Association) formulated the "ICE8000 International Credit Standard System Credit Rating Standard", which clarifies the credit rating procedures of ICE8000 credit institutions, and clarifies the relevant requirements for the formulation, filing and practical verification of credit rating standards, so that Prevented the ICE8000 credit agency from issuing credit rating certificates indiscriminately.
3. Securities credit rating means that a credit agency evaluates the possibility of repayment of principal and interest or income of a certain issued securities (such as bonds, stocks, etc.), and finally issues quantitative judgments or formal opinions, and uses specific rating symbols (such as : AAA, BB, etc.) to assign a credit rating to the appraised securities.
4. Subject credit rating refers to credit institutions' assessment of the credit status of an organization (but not the specific bonds issued by the organization) such as repayment ability and performance ability, and uses specific rating symbols (such as: AAA, BB, etc.) The assessed objects are divided into credit ratings.
5. Subject credit ratings are divided into unit credit ratings, individual credit ratings, and sovereign credit ratings based on the identity of the appraised object.
6. Sovereign credit rating refers to the evaluation by credit rating agencies on the credit willingness and credit ability of a country's government as a debtor to fulfill its debt repayment obligations. Standard & Poor's lowered Greece's credit rating, which means lowering Greece's sovereign credit rating. Because sovereign credit ratings are not ratings for a specific batch of bonds, we classify them as sovereign credit ratings. However, since sovereign credit ratings are often expressed as the ratings of national bonds issued by a country, sovereign credit ratings can also be classified into securities credit ratings.
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