“C&G” Credit Ratings
Definition
"C&G" Credit Ratings are assessments of the creditworthiness of countries and governments. These ratings help investors gauge the risk associated with investing in a particular nation's debt securities.
5 Must Know Facts For Your Next Test
- C&G Credit Ratings are issued by agencies such as Moody's, Standard & Poor's, and Fitch.
- A high C&G Credit Rating indicates low risk and high creditworthiness of the country or government.
- These ratings affect interest rates on government bonds; higher ratings usually lead to lower interest rates.
- Changes in C&G Credit Ratings can influence a country's ability to borrow money from international markets.
- Economic stability, political environment, and fiscal policies are key factors considered in determining these ratings.
Review Questions
- What entities typically issue C&G Credit Ratings?
- How do high C&G Credit Ratings impact interest rates on government bonds?
- What factors are considered when determining a country's or government's credit rating?
"“C&G” Credit Ratings" appears in:
Study guides (1)
Related terms
Sovereign Debt: Debt issued by a national government in a foreign currency to finance the issuing country's growth and development.
Credit Risk: The possibility that a borrower will default on their obligations by failing to repay principal and interest.
Bond Yield: The amount of return an investor realizes on a bond, which is inversely related to its price.
