Cash & Liquidity Management
Published  6 MIN READ
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Credit Ratings: Myth vs Reality

by Yann le Pallec, Executive Managing Director, EMEA Ratings Services, Standard & Poor’s

Credit ratings agencies have received a lot of attention in recent years, yet confusion remains about their role and how they operate. In this article the EMEA head of Standard & Poor’s Ratings Services addresses 10 common myths about the industry.

Myth 1

A credit rating tells me whether or not I have a good investment

Credit ratings are not buy or sell recommendations, nor are they substitutes for independent investment analysis. Instead, ratings are an opinion about the capacity and willingness of a borrower to meet its financial obligations in full and on time.