Markets
Saturday, 7/18, 04:33 AM
What Credit Rating Agencies Do, and Why a Downgrade Matters
- When a rating agency cuts a company's or a country's grade, borrowing gets more expensive and, sometimes, forced selling follows.
- Three firms, S&P, Moody's and Fitch, dominate this business, and a single letter change can move billions.
- Here is what the ratings measure, how the scale works, and why the crucial line runs between 'investment grade' and 'junk.'