| Checking Credit | | | | There are three major entities that will provide rating |
| Most people understand the importance of checking | | | | systems for companies; Standard and Poor's, Fitch |
| their credit, but some may not completely understand | | | | IBCA, and Moody's. This rating will aide investors in |
| why. It is important for individuals to keep an eye on | | | | determining the level of risk involved with their |
| their credit score so they will not be hit with any | | | | investments choices. The ratings will range from a high |
| surprises once it is time to purchase something that | | | | quality credit score to a default or junk rating. If an |
| requires a good credit report. One of the most reliable | | | | investor would like to translate the rating themselves, |
| ways to check a credit score is by using the Annual | | | | the triple A rating is the best quality credit score |
| Credit Report Request. There are also other options | | | | possible, while a C or D score is considered junk. Fitch |
| when it comes to checking credit in the form of credit | | | | ICBA uses a slightly different scale that the AA rating |
| monitoring. This will allow an individual to catch potential | | | | would be a high credit rating, triple B is equal to good |
| acts of identity theft and other errors that may arise | | | | credit, and triple A is still the best possible credit score. |
| quickly, so they can have them corrected before they | | | | With Fitch ICBA, anything lower than a triple B is |
| need to use their credit. If an error is found, then an | | | | considered junk. If an investor is using Standard and |
| individual will need to contact the three major credit | | | | Poor's rating system, then D is considered the worst |
| bureaus about the inconsistency. This can be done by | | | | possible score. |
| writing a letter and mailing it by certified mail along with | | | | A sovereign credit rating is the type of credit score |
| any supporting documents. If the claim changes a | | | | that is issued to countries and their capability to provide |
| person's credit score he or she, may receive an | | | | a stable investment environment for investors. There |
| additional free credit report with their accurate credit | | | | are numerous factors reflected in a sovereign credit |
| rating. | | | | rating including, private investment, foreign currency |
| | | | reserves, economic status, and political stability. These |
| Bond Credit | | | | aspects are usually the first thing institution investors |
| Individuals are not the only entities that have credit | | | | research when considering investing abroad. Investors |
| reports. Corporations have bond credit ratings as well, | | | | are not the only ones who look at credit scores in this |
| which is essentially their credit rating. Reviewing a bond | | | | arena, entities searching for investors will also use this |
| credit report is one of the ways that investors, | | | | to find additional funding. Investment grade reports will |
| considering debt securities from both domestic and | | | | generate interest for a country or company, which will |
| foreign companies, assess the risks involved. This type | | | | make it desirable for foreign investors. A high credit |
| of rating, which are more widely known as corporate | | | | rating will also aide emerging market economies, which |
| credit ratings, can be assigned to both long and | | | | shows how safe their foreign investors' funds really |
| short-term obligations as well as loans, insurance | | | | are. Today, credit ratings will facilitate investments as |
| companies, securities, and preferred stock. Usually, | | | | both companies and nations attempt to improve their |
| long-term credit ratings will indicate whether a | | | | credit ratings. |
| company will pay its debt. | | | | |