Credit rating class

The publicly announced classification of a company, a fund or a state by major international rating agencies on the basis of a specific, transparent grid. A downgrade means that the debtor has to pay higher interest when taking out a loan. – In the course of Basel II, the classification of a borrower with regard to the probability of default. – The market’s assessment of a particular security, its expression being the ekart in the case of bonds. – See adverse selection, credit quality, credit discount, credit analysis, central bank, credit rating, downrating, ekart, investment grade, calibration, spread of terms, credit quality, credit commitment, irrevocable, Mittelstandsbank, adverse selection, plutoed, pricing power, rating, rating agency, risk adjustment, scoring, shadow rating, discriminatory power. – Cf. Deutsche Bundesbank Monthly Report of September 2003, p. 64 et seq., Deutsche Bundesbank Monthly Report of April 2006, p. 31 (central bank-eligible collateral and its credit quality classes; p. 39: overview), Deutsche Bundesbank Monthly Report of December 2006, p. 78 (credit ratings by rating agencies).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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