A credit rating agency is a potential source of information for market participants who are trying to ascertain the creditworthiness of borrowers. Essentially, rating agencies offer judgments (they prefer the word "opinions") about the quality of bonds issued by corporations, governments (including U.S. state and local governments, as well as "sovereign" issuers abroad), and mortgage securitizers. These judgments come in the form of letter grades. The best-known scale is that used by Standard & Poor's (S&P) and some other rating agencies: AAA, AA, A, BBB, BB, etc., with pluses and minuses as well.
How Financial Regulation Entrenched this Industry's Role in the Subprime Mortgage Debacle of 2007 - 2008
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