Top 10 credit rating agencies of the world


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Top 10 credit rating agencies of the world

  1. 1. Top 10 Credit Rating Agencies of the worldHere is the list of Top 10 Credit Rating Agencies of the world. These agencies are Nationally Recognized Statistical RatingOrganizations by the U.S. Securities and Exchange Commission1. MODDY’S Moody’s is the oldest credit rating agency. It is also the first ratingagency to be recognized by NRSRO in 1975. The company became public in 2000. It has been earning huge profits. Averageprofit margin was 53% from 2000 to 2007. Structured finance products was its top source of revenue by 2000.2. Standard & Poor’s The agency is owned by Mc Graw-Hill Inc. It has been publishedany stock indices of the world, most famous being S&P 500 index which is the most watched index in the world. McGraw-Hillreported a net profit margin of 12.6 percent for 2008.
  2. 2. 3. Fitch Fitch is smallest among the top three agencies. It is a part ofFitch Group, a subsidiary of Fimalac S.A FIM.PA. Was the third agency to become an NRSRO in 1975. From 1975 to 1992, fourother agencies were recognized as NRSROs and all subsequently merged with Fitch.4. DBRS DBRS is privately owned Canadian ratings agency. Has been the top ratings agency inCanada for 30 years. It became the fourth NRSRO in 2003. DBRS believes that it can compete with the big three but is notfavored by authorities.5. Egan-Jones Egan-Jones is a Philadelphia-based agency foundedin 1995. It was granted NRSRO status in December 2007 after a nine-year process. Although they are paid by investor-subscribers, Egan-Jones will give out their ratings to anyone who asks.
  3. 3. 6. A.M Best A.M Best was founded in 1899 in NewYork City and became an NRSRO in 2005. It specializes exclusively on the insurance marketplace and so not a competitor withthe others per se. But has recently begun issuing debt and financial-strange ratings for small and mid-sized commercial banks.7. Japan Credit Rating Agency Limited Japan Credit rating Agency wasestablished in 1985 and based in Tokyo and it became an NRSRO in 2007. It is a small agency when compared to competitors. ithas a staff of just 90.8. Rating and Investment Information Inc The second Japanese credit ratings agency to become an NRSRO in 2007. It was set upin 1975, now based in Nihonbashi. New York office was set up in 2005.9. LACE Financial It was founded in 1984, and became a NRSRO in 2008. The second NRSRO afterEgan-Jones to operate on investor-paid business model.
  4. 4. 10. Realpoint LLC Realpoint LLC became a NRSRO in 2008. It is one of the smallest NRSROsand is paid by issuers. Obtained an exemption in 2008 from the SEC regulation that an NRSRO is prohibited from rating anissuer that contributes 10 percent or more of its revenue.