Salma El Haddaji.

Credit Rating Agencies

Based on historical data, CR or credit rating are an instrument used by investors, it

contributes, helps and support them in the process of decision making concerning investing on
bonds and different other fixed income securities. in addition, credit ratings are issued to rate
particular types of fixed income investments, namely, corporate bonds, preferred stocks and
government bonds. This rating can be done in two distinguishable ways, long-term and short-
term obligations. Having performed a rating process helps the company to better function and
uses its resources and retained earnings in the most efficient way possible. Knowing that capital
is the main pillar of every business, it is the primary resources that allows individuals to launch
their businesses, build different factories, turning inputs to outputs and lastly creating jobs,
accordingly this credit rating helps support and promote the expansion and the evolution of the
capital markets. They are moreover independents opinions about credits risks While using
common nomenclatures, credit ratings expresses an independent assessment the worthiness of
a credit using. Therefore, who performs these credits ratings? and how?
CRA, credit rating agencies are specialized in performing and providing credit rating to
individuals and companies. It measures either on the short-run or the long-run the quality of an
individual credit for instance bonds, identify and evaluate the risks of the credits. On the short
term the credit rating agencies aim attention at the ability of securities of performing with the
current organization’s current financial circumstances, on the other side, in the long-term the
agencies examine and evaluate the ability of the organization to achieve its goals and
responsibilities in regards of all its fixed income issued.
Abundant number of credit rating agencies exists, and the prominent ones in the credit
rating industry are the big three, Standard & Poor’s (S&P), Moody’s, or Fitch. In most cases,
the assessment of credits and the judgement of the governments and companies is done by the
big three. The credit rating is done differently from an agency to another, thus, Standard&
Poor’s,
Standard Statistics formed in 1906, which published corporate bond, sovereign debt and municipal
bond ratings. Standard Statistics merged with Poor's Publishing in 1941 to form Standard and Poor's
Corporation, which was acquired by The McGraw-Hill Companies, Inc. in 1966. Standard and Poor's
has become best known by indexes such as the S&P 500, a stock market index that is both a tool for
investor analysis and decision-making, and a U.S. economic indicator. (See A Trip through Index History
to learn more about Standard & Poor's indexes.)
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Fundamental Analysis vs Technical Analysis | Side by Side Comparison

Vaidya, D. (2018). Fundamental Analysis vs Technical Analysis | Side by Side Comparison.]
Learn Investment Banking: Financial Modeling Training Courses Online.
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Is It Better To Use Fundamental Analysis, Technical Analysis, Or Quantitative Analysis
To Evaluate Long-Term Investments?
Investopedia. Is it better to use fundamental analysis, technical analysis, or quantitative analysis to
evaluate long-term investments?.
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Technical Analysis 'Only Looks At The Past' — Just Like Every Other Form Of Market
Analysis
Business Insider. Technical analysis 'only looks at the past' — just like every other form of market
analysis.
Available at: https://www.businessinsider.com/technical-analysis-uses-data-from-past-2015-11
Using Volume To Predict Price Movement
Bourquin, T. (2007). Using Volume To Predict Price Movement. Using Volume to Predict
Price Movement.
Available at: https://www.moneyshow.com/articles/daytraders-4676/
WHAT IS A STOP-LOSS IN FOREX TRADING? AND HOW DO YOU SET IT?
Admiral Markets (United Kingdom). What Is A Stop-Loss In Forex Trading? And How Do
You Set It?.
Available at: https://admiralmarkets.com/education/articles/forex-basics/what-is-stop-loss-in-
forex-trading-and-how-to-set-it

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