A credit rating (or score) is a measure of a company or corporation’s ability to meet their financial commitments based on their previous dealings. It can also be viewed as a measure of a company’s credit worthiness when issuing bonds.  Scores will be calculated by reference to various items, for example cash flow, profits, equity and financial ratios.

Credit ratings are issued by three main agencies:

  • Standard & Poor’s
  • Fitch
  • Moody’s.

The rating system and calculations vary between each however generally they range from AAA+ [Good] to CCC [Poor].

On Bloomberg you can get to a company (equity) credit rating by entering the code CRPR which will give you the credit rating profile. An example is shown below.

credit-rating-screen-for-tesco

You will also find S&P Credit ratings on the Capital IQ platform. Simply select credit ratings from either the Most Used or Fixed Income menu that can be found at the right hand side of the company profile. Remember to create an account if you wish to use Capital IQ our blog post explains how to register for one.

To access the credit ratings on Thomson One you can select ‘Debt Overview’ from the toolbar once you are in the relevant company record.

credit-ratings-T1

Please note that access to Thomson One is currently only accessible from off-campus via the VMWare Horizon Client. Please see our blog post for more details.

Fame has a new credit rating system, developed by the company CRIF Decision Solutions in collaboration with Jordan’s, which provides a number that predicts whether a company will become insolvent. To view the credit rating for a company, open the Company profile section of the left-hand report menu and select ‘Credit & CCJs’.

Any questions, contact MIRC.

Feature image from Pixabay. Available at: https://pixabay.com/photos/savings-budget-investment-money-2789112/

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