Category: Methodologies

Rating methodologies describe the analytical framework rating committees use to assign ratings. Methodologies are not necessarily intended to present an exhaustive treatment of all factors reflected in ratings of a rating agency. Rather, they might only describe the key qualitative and quantitative considerations that are usually most important for assessing risk in a given sector or for a given asset class. Analysts might apply their own judgment in determining whether or how to emphasize rating factors. Cross-sector methodologies cover general rating topics and are typically used in conjunction with sector-specific methodologies to assign ratings. Although most of rating methodologies apply to a particular industry, sector or class of issuers or transactions, some describe an approach to analytical considerations that aren’t specific to any single sector.