Category: Agencies

An agency is a business or organization providing a particular service on behalf of another business, person, or group. Any business providing ratings can be called a rating agency. A credit rating agency in particular, also called a ratings service, is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default. A registered agency enjoys the recognition of some authority and may rate the creditworthiness of issuers of debt obligations, of debt instruments, and in some cases, of the servicers of the underlying debt.