What Is A Rating?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

A rating is an assessment of credit-worthiness assigned to a bond, corporation or country. The idea behind a rating is that it gives investors an idea of how likely an entity is to repay its debts.

The ratings are assigned by a rating's agency, with the most famous being Moody's and Standard & Poors and typically follow a letter system with AAA being the top rating. As of October 2011, some AAA rated countries are the United Kingdom, Germany, Hong Kong and Switzerland.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.