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Stock rating |
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Stock ratingAn evaluation by a rating agency of the expected financial performance or inherent risk of common stocks.Stock rating Similar MatchesBond ratingBond ratingCorporate and government bonds are generally considered a safe form of investment compared to shares, in the sense that you are 'guaranteed' to get repayment of the principal and interest payments. But the value of the 'guarantee' depends substantially on who has issued the bond - a financially healthy issuer, or one that is struggling to meet its borrowing obligations.Credit rating agencies like Moody's and Standard & Poor's (S&P) and Fitch IBCA provide a service to the investment community by grading bonds according to how likely it is that the issuer will default either on interest or capital payments.For S&P the ratings vary from AAA (the most secure) to D which means the issuer is already in default.For Moody's the ratings go from Aaa to D.Only bonds with a rating of BBB or better are considered 'investment grade' - that is, secure enough for institutions to invest in. Anything below that grade is 'non-investment grade' or 'junk'.The ratings which S&P and Moody's give a bond are continually checked and revised in the light of new research done by those firms. When a bond is downgraded it is a serious event for the issuer because it makes it harder (or more expensive) to raise new borrowings, but it is also bad news for holders of the bonds, because the market invariably marks down the value of the bond. Whites ratingWhites ratingA rating of municipal securities, that uses market factors rather than credit considerations to find appropriate yields. Credit ratingCredit ratingA rating used by banks, insurance companies, mortgage companies and other financial institutions making loans which they use to judge an individual or company's credit worthiness.Depending on how many points the applicant gets when his/her personal details are run through the rating system, the financial institution will either accept or reject the risk.Financial institutions rely on highly computerised credit rating systems, and co-operate with each other in providing details of bad credit risks. Hence the concept of the 'black list'. Operating marginOperating marginThe Turnover of a company (its sales) minus direct costs and overheads. Credit ratingCredit ratingThe degree of credit worthiness assigned to a person based on credit history and financial status. Further SuggestionsOperating AssetsAppel Loan (Accelerating Payoff Progressive Equity Loan) Credit Rating Agencies Bond rating Short run operating activities Experience rating operating cash flow Net operating losses Operating risk Chief Operating Officer (COO) Operating in the red Non Vessel Operating Common Carriers (NVOCC) Operating system Operating expenses Morningstar rating system Operating rate Split rating Operating cycle Hulbert rating operating profit rating S&P Rating Net operating loss carryforwards operating costs Operating profit margin |
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