Fitch Ratings
Fitch Ratings is an award-winning provider of credit ratings, commentary and research. Founded in 1913, Fitch Ratings' global expertise draws on local market knowledge and spans across the fixed income universe. The company provides forward-looking credit opinions on investments, which reflects its likelihood of default. They also analyze the issues of companies, local governments and agencies, and financial institutions for their creditworthiness. Fitch Ratings ranks among the “Big Three credit rating agencies,” with the other two being Moody’s and Standard & Poor’s. Using similar grading systems, the companies rate bonds on a scale from top-quality "investment grade" to low-quality "speculative" or junk bonds.
ABOUT FITCH RATINGS
Fitch Ratings is a global rating agency dedicated to providing value beyond the rating through independent and prospective credit opinions, research and data.
The company produces both long-term and short-term credit assessments, widely used across capital markets.
The credit ratings provided by Fitch are utilized by investors, intermediaries, issuers of debt, and businesses and corporations.
Fitch is one of the globally acknowledged "Big Three" credit rataings agencies alongside Moody’s and S&P, holding around 12–15% of the global ratings market. The company often acts as a "tie-braker" when S&P and Moody’s ratings diverge.
RATING METHODOLOGY
Data Gathering.
Collects both quantitative data (financial statements, market stats) and qualitative insights (management quality, industry factors, governance).
Analytical Modeling.
Employs models for Probability of Default, Loss Given Default, and Exposure at Default.
Benchmarking & Peer Comparisons.
Positions entities against peers and historical data under various economic scenarios.
Rating Committee.
Teams propose ratings, which are reviewed and finalized by a committee of senior analysts.
Monitoring & Updates.
Once published, ratings undergo continuous surveillance with Outlooks and Rating Watches pending events.
CREDIT RATING SCALE
AAA to BBB are investment grades. BB to D are non-investment grades.
The '+' and '-' modifiers (e.g., AA+, AA, AA-, A+, A, A-) indicate relative standing within each category.