“C&G” Credit Ratings

Definition

"C&G" Credit Ratings are assessments of the creditworthiness of countries and governments. These ratings help investors gauge the risk associated with investing in a particular nation's debt securities.

5 Must Know Facts For Your Next Test

1. C&G Credit Ratings are issued by agencies such as Moody's, Standard & Poor's, and Fitch.
2. A high C&G Credit Rating indicates low risk and high creditworthiness of the country or government.
3. These ratings affect interest rates on government bonds; higher ratings usually lead to lower interest rates.
4. Changes in C&G Credit Ratings can influence a country's ability to borrow money from international markets.
5. Economic stability, political environment, and fiscal policies are key factors considered in determining these ratings.

Review Questions

• What entities typically issue C&G Credit Ratings?
• How do high C&G Credit Ratings impact interest rates on government bonds?
• What factors are considered when determining a country's or government's credit rating?

Related terms

Sovereign Debt: Debt issued by a national government in a foreign currency to finance the issuing country's growth and development.

Credit Risk: The possibility that a borrower will default on their obligations by failing to repay principal and interest.

Bond Yield: The amount of return an investor realizes on a bond, which is inversely related to its price.