Rating Agency Condition Definition & Meaning | Financial Term | CSIMarket
CSI Market
Sign In | Register

Glossary

Rating Agency Condition

Financial Term

Rating Agency Condition refers to the evaluation process undertaken by credit rating agencies (CRAs) to determine the creditworthiness or credit quality of various entities, such as corporations, governments, and securities products. In the financial industry, credit ratings play a crucial role in assessing the risks and rewards of various investments, as well as determining the interest rates and yields associated with them.

Credit rating agencies use a range of qualitative and quantitative measures to assess an entity*s creditworthiness, including financial ratios, management quality, industry trends, and macroeconomic factors. From this analysis, rating agencies assign a credit rating to the entity, which typically ranges from AAA (highest credit quality) to D (default).

The ratings assigned by credit rating agencies are widely used by investors, regulators, and other financial market participants to make investment decisions and manage risk. For example, institutional investors such as pension funds and insurance companies may be required to invest only in securities with a minimum credit rating, while banks and other financial institutions use rating information to make lending decisions.

However, the rating agencies* reliance on historical data and assumptions about future events has been criticized for contributing to the 2008 financial crisis. Nonetheless, credit ratings continue to play a crucial role in the modern financial system, informing investment decisions and reflecting the overall health of the global economy.


More Glossary Terms Beginning with R
  • Radiolabeling
    Process of attaching a radioactive isotope, such as Iodine 131.
    Health Care Term Letter: R
  • Radiopharmaceutical
    A radioactive compound used in radiotherapy or diagnosis.
    Health Care Term Letter: R
  • Randomized Clinical Trial
    A clinical trial in which the participants are assigned randomly to different treatment groups.
    Health Care Term Letter: R
  • Rate of Change ROC
    Rate of Change ROC Untitled Document Rate of Change ROC The Rate of Change (ROC) indicator is similar to momentum, a oscillator that measures the percent change in price from one period to the next. When ROC is above the 0-line and rising, prices are increasing at an increasing rate. If ROC is above the 0 line but is declining, prices are still increasing but at a decreasing rate. On the other han
    Technical Indicator Letter: R
  • Rating Agency Condition
    means the written confirmation or reaffirmation, as the case may be, from each rating agency then rating the notes that any intended action will not result in the downgrading of its then-current rating of any class of notes.
    Financial Term Letter: R
  • Reagent
    A chemical added to a sample under investigation in order to cause a chemical or biological reaction which will enable measurement or identification of a target substance.
    Health Care Term Letter: R
  • Receivables From Customers
    Primarily represents loans to customers which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.
    Financial Term Letter: R
  • Receivables Turnover Ratio
    A ratio that measures companys ability to collect the loans (Accounts receivables) it has provided to its customers by dividing revenus by accounts recievable. High ratio indicates that company efficiently collects it outstanding recievables. Accounts Receivables Turnover Ratio Formula = (Revenue / Receivables)
    Fundamental Analysis Letter: R
  • Receptor
    a protein on the cell surface or inside the cell that is the binding sites of ligands, including agonists and antagonists.
    Health Care Term Letter: R
  • Recession
    In general usage, the word recession connotes a marked slippage in economic activity. While gross domestic product (GDP) is the broadest measure of economic activity. The recession is often-cited as two consecutive quarters of negative GDP.
    Economy Term Letter: R
  • RECIST
    Response Evaluation Criteria in Solid Tumors, a US standard.
    Health Care Term Letter: R
  • Recombinant
    Novel DNA made by genetic engineering.
    Health Care Term Letter: R