Fitch Ratings
Fitch Ratings is a leading global provider of credit ratings, research, and analytical insight that help investors and institutions make informed financial decisions. Founded in 1913, Fitch has built more than a century of expertise in evaluating credit risk across industries, sectors, and geographies. With a presence in major financial centers worldwide, Fitch Ratings combines global expertise with deep local market knowledge, offering a comprehensive perspective across the fixed-income and debt markets. Its analyses cover bonds, structured finance, sovereign debt, and other financial instruments, helping investors gauge creditworthiness and manage risk. Fitch Ratings is one of the “Big Three” credit rating agencies, alongside Moody’s Investors Service and Standard & Poor’s. Using a standardized grading system, Fitch assigns ratings that range from investment-grade to speculative or “junk” status. These ratings play a crucial role in shaping borrowing costs, investor confidence, and global capital flows.
Fitch Ratings is a leading global credit rating agency committed to delivering independent, forward-looking credit opinions, research, and data-driven insights that empower investors and issuers to make better-informed financial decisions.
The agency produces both long-term and short-term credit assessments, which are widely used by investors, financial intermediaries, corporations, and sovereign issuers to evaluate credit risk and inform investment strategies.
Fitch is one of the globally recognized “Big Three” credit rating agencies, alongside Moody’s Investors Service and S&P Global Ratings, holding approximately 12–15% of the global ratings market.
Often regarded as a “tie-breaker” when Moody’s and S&P ratings diverge, Fitch provides an essential third perspective in credit analysis.
RATING METHODOLOGY
Data Gathering – Fitch collects both quantitative data (e.g., financial statements, market statistics) and qualitative insights (e.g., management quality, governance standards, and industry conditions).
Analytical Modeling – Sophisticated models assess metrics such as Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD) to evaluate an entity’s credit profile.
Benchmarking & Peer Comparison – Ratings are benchmarked against historical data and peer performance across different economic environments to ensure consistency and comparability.
Rating Committee Review – Proposed ratings are evaluated and finalized by an independent committee of senior analysts, ensuring objectivity and oversight.
Monitoring & Ongoing Surveillance – Once issued, ratings undergo continuous monitoring. Updates, Outlooks, and Rating Watches are published to reflect material changes in credit risk or market conditions.
AAA (Highest Credit Quality) – Exceptionally strong capacity to meet financial commitments
AA (Very High Credit Quality) – Very strong capacity; differs slightly from AAA
A (High Credit Quality) – Strong capacity; somewhat more susceptible to adverse changes
BBB (Good Credit Quality) – Adequate capacity but more likely to weaken under stress
BB (Speculative) – Faces major uncertainties or exposure to adverse conditions
B (Highly Speculative) – Material credit risk; limited margin of safety
CCC (Substantial Credit Risk) – Vulnerable to nonpayment; dependent on favorable conditions
CC (Very High Credit Risk) – High likelihood of default
RD (Restricted Default) – Selective default on some obligations
AAA to BBB are investment grades. BB to D are non-investment grades.
The '+' and '-' modifiers (e.g., AA+, AA, AA-, A+, A, A-) indicate relative standing within each category.