Rating (of English evaluation, estimate) generally designates the procedure for the estimate of persons, articles or enterprises.

Meaning in the banking

In the banking one understands the estimate of the solvency of a debtor by Rating. Ratingcodes are used. The classification effected according to bank-own criteria or is made by internationally active Ratingagenturen such as Moody's, standard & Poor's or Fitch. Calculated by means of mathematical and/or statistic procedures probabilities of failure on the basis loss characteristics and e.g. with AAA (speak: tripolarize A) evaluated. This Ratingcode stands for highest soil quality, C or D against it for a very bad. The individual category designations differ from agency to agency. Thus Moody's numbers uses A1, a2, as additive, e.g. A3, during with standard & Poor's "+" or" - "one adds.

Ratings gives it both for loans of enterprises and for states. So e.g. Austria a AAA Rating has.

Usually it applies that a debtor with better Rating can provide better conditions (lower interest) capital. On the other hand it applies that debtors with a bad Rating must pay a higher interest rate due to the higher probability of failure (soil quality risk), coming by it to the expression.

A devaluation (down grading) concerning the Ratings can have thus a negative effect on enterprises or states, which must suddenly offer more net yield for their capital needs. Around the Rating there were already frequently violent arguments between the Rating agency and the judged enterprise.

The cost of the Ratings are to be borne from the enterprise which can be judged to. However better, a bad Rating is to be had than none, since many investors ignore debtors without Rating. Particularly in the USA the Rating has a long tradition and it is so well impossible already, without taking up Rating capital. Therefore meanwhile also most considerable European enterprises of the Rating are seized.

Institutional investors like pension funds are obligated e.g. by law or by their own statutes to buy only loans from debtors to whom a certain Mindestrating has. Distinctive between "Investment of degrees" and "Speculative of degrees" - the latters are also called "Junk bond". A debtor in its Rating falls under the "Investment of degrees" like that is usually particularly violent the course anticipated payments on his loans.

Changes of the Ratings of a state or an enterprise announce the Ratingangenturen frequently by a "negative or positive view" for a long time before publication of the next Rating report. Therefore one can assume the prices of the loans already adapted months before publication of the Rating report to the new estimate. This supports in the rest of the thesis of the medium strong market efficiency.

A Ratinganalyst accomplishes external and internal Ratings. Apart from the methodical and conceptional proceeding with the production of a Ratings, he has also technical know-how within the range of the quantitative and qualitative Ratingfaktoren.

Other meanings

• Within the range Ratings refer television to the ratingses.
• In the chess sport the play strength of a player in a Rating is seized, see in addition ELO number.

See also

• Basel II

Related links

• Information to Rating, bank credit and Basel II
• Information portal to Basel II
• University of Augsburg - qualification to the RatingAnalysten"™
• Federal association of the Rating analysts and - Advisor registered association.

Articles in category "Rating"

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