credit agency

Examples of credit agency in the following topics:

• International Credit Rating Agencies

  • International credit-rating agencies do not focus on risk for particular companies but assess investment risk associated with countries.
  • Two well-known credit agencies are A.M Best and Coface.
  • Best is an international credit agency that classifies country risk into five tiers.
  • Coface, France's export credit underwriter, is another international credit-rating agency.

• Ratings

  • Bond credit rating agencies assess and report the credit worthiness of a corporation's or government's debt issues.
  • The credit rating is analogous to a credit rating for individuals.
  • The ratings are assigned by credit rating agencies, such as Moody's, Standard & Poor's, and Fitch Ratings, and are given in letter designations (AAA, B, CC), which represent the quality of a bond.
  • These are bonds that are rated below investment grade by the credit rating agencies.
  • Until the early 1970s, bond credit ratings agencies were paid for their work by investors who wanted impartial information on the credit worthiness of securities issuers and their particular offerings.

• The Export-Import Bank of the United States

  • The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States federal government.
  • The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States federal government.
  • It was established in 1934 by an executive order and made an independent agency in the Executive branch by Congress in 1945.
  • Its purpose is to finance and insure foreign purchases of United States goods for customers unable or unwilling to accept credit risk.
  • Export Credit Insurance provides insurance policies to U.S. companies and banks to mitigate risks of non-collection from foreign buyers and borrowers.

• Bond Rating System

  • The credit rating is a financial indicator assigned by credit rating agencies; bond ratings below BBB-/Baa are considered junk bonds.
  • In investment, the bond credit rating assesses the credit worthiness of a corporation's or government's debt issues.
  • These are assigned by credit rating agencies such as Moody's, Standard & Poor's, and Fitch Ratings to have letter designations (such as AAA, B, CC), which represent the quality of a bond.
  • Credit rating agencies registered as such with the SEC are "Nationally recognized statistical rating organizations. " The following firms are currently registered as NRSROs: A.M.
  • Generally, they are bonds that are judged by the rating agency as likely enough to meet payment obligations that banks are allowed to invest in them.

• Credit Ratings

  • It is an evaluation made by a credit rating agency of the debtor's ability to pay back the debt and the likelihood of default.
  • Credit ratings are determined by credit ratings agencies.
  • Therefore, some rating agencies simply report short-term ratings.
  • These are assigned by credit rating agencies such as A.
  • Each credit rating agency designates the quality of bonds with letters.

• Collecting Receivables

  • Another way to evaluate a credit policy is to look at the receivable turnover ratio.
  • If firms so choose, they can utilize a collection agency.
  • There are many types of collection agencies.
  • A company may protect against bad-debts losses by purchasing trade credit insurance.
  • This is an insurance policy and a risk management product offered by private insurance companies and governmental export credit agencies to business entities wishing to protect their accounts receivables from loss due to credit risks like protracted default, insolvency, or bankruptcy.

• The National Credit Union Administration (NCUA)

  • The NCUA is the independent federal agency created by the U.S.
  • The National Credit Union Administration (NCUA) is the United States independent federal agency that supervises and charters federal credit unions.
  • The chartering of credit unions in all states is due to the signing of the Federal Credit Union Act by President Franklin D.
  • At first, the newly created Bureau of Federal Credit Unions was housed at the Farm Credit Administration.
  • Responsibility for regulation would shift over the years as the agency migrated from the Federal Deposit Insurance Corporation to the Federal Security Agency, then to the Department of Health, Education, and Welfare.

• The Small Business Administration

  • The Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses.
  • The Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses.
  • SBA loans are made through banks, credit unions, and other lenders who partner with the SBA.
  • Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee in order to strengthen access to capital for small businesses after credit froze in 2008.
  • The agency had record lending volumes in late 2010.

• Depository Institutions

  • Many borrowers seek bank loans for mortgages, car loans, or credit cards.
  • Currently, savings institutions are similar to banks, except different government agencies regulate the savings institutions.
  • Credit unions are another depository institution.
  • For example, many states have credit unions for schoolteachers.
  • Consequently, the commercial banks want credit unions on equal grounds with commercial banks because a credit union does not pay income taxes on its profit.

• The Federal Deposit Insurance Corporation (FDIC)

  • The Federal Deposit Insurance Corporation is an independent agency whose mandate is to maintain stability and public confidence in financial system.
  • An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s.
  • United States banks and credit unions are closely regulated and supervised to ensure that consumer money is safe.
  • Banks and credit unions are required to comply with regulations.The Federal Deposit Insurance Corporation (FDIC) insures deposit accounts for banks and the National Credit Union Administration for credit unions.
  • The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system.