Credit rating agencies are responsible for providing investors with information regarding corporation and organization creditworthiness. Credit rating agencies are different from the more widely known credit reporting agencies. While credit reporting agencies are responsible for compiling a wide variety of financial data necessary for loan decisions for individuals, credit rating agencies do the mathematical and statistical math involved in placing a number (rating) on an organization or corporation's credit history.
Standard & Poor
Standard and Poor's credit rating service was founded by Henry Varnum Poor in the late 1800s, after writing a book about the future of securities analysis and financial reporting. Over time, the company released corporate bond, municipal bond, and sovereign debt ratings. By 1966, Standard and Poor's became well-known through the S&P 500 for investor analysis and U.S. economic indicators.
Moody's Investor Service
John Moody was the founder of Moody's Investor Service. In 1900, he published a manual that contained statistics and other information regarding industrial stocks and bonds. In 1914, Moody's Investors Service began providing ratings for government bond markets. In the 1960s to present time, Moody's rates both paper and bank deposits, resulting in a highly-successful full-scale rating agency.
Fitch Ratings
The Fitch Publishing Company was founded by John Knowles Fitch in 1913. Using financial statistics in the investment industry, he produced a manual that outlined the AAA to D rating system that all the credit rating agencies use as their standard today. Fitch now operates subsidiaries that specialize in enterprise risk management as well as data services and industry training from the financial factor.
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