Credit rating can be divided into regular rating and irregular tracking rating.
Irregular tracking rating means that when the company has undergone major changes, the rating agency or the company actively invites the rating agency to re-rate the impact of the event, and the rating results will fluctuate or remain unchanged.
Regular rating, usually annual rating.
Bond credit rating refers to a fair and objective evaluation of the reliability of debt service of bonds to be issued according to a certain index system.
Bond credit rating is an opinion on whether bond issuers can repay bonds and other debt instruments on time before the maturity date. It has two functions:
First of all, bond credit rating helps investors to make bond investment decisions. Because buying bonds involves certain risks, if the issuer fails to repay the principal and interest at maturity, investors will suffer losses. Professional institutions make an objective, fair and authoritative evaluation of the reliability of debt service of the bonds to be issued, so as to facilitate investors' decision-making.
Second, the bond credit rating reduces the financing cost of high-credit issuers. Generally speaking, bonds with higher credit ratings are more likely to gain the trust of investors and can be sold at lower interest rates; Bonds with low credit rating are risky and can only be issued at higher interest rates.
The most authoritative credit rating agencies recognized internationally mainly include Moody's Investment Services and Standard & Poor's. The above two companies are responsible for rating a wide range of bonds, including local government bonds, corporate bonds and foreign bonds. Because they have detailed information, advanced scientific analysis technology, rich practical experience and a large number of professionals, their credit rating is highly authoritative. In addition, there is Fitch.