A formal evaluation of an individualÂ’s or companyÂ’s credit history and ability to repay obligations. Many firms investigate, analyze, and maintain records on the credit responsibility of individuals and businesses. A credit rating is based on the number of outstanding debts and whether debts have been repaid in a timely man-
ner in the past. The best-known business credit rating agencies are Standard & PoorÂ’s, MoodyÂ’s Investors Service, and Fitch Ratings. Other agencies specialize in credit ratings of individuals.