How Fitch, Moody's and S&P rate each country's credit rating

Guardian
April 15, 2011

Ireland have had their credit rating slashed by Moody's, down two notches to Baa3 - leaving it at just above junk status. As the verdict was delivered the Euro dropped against the dollar.

Last month Portugal had their credit rating slashed from A1 to A3 after Moody's stated concerns over the country's subdued growth for the next few years.

Greece have also had their ratings re-assessed with Moody's bringing their rating down to B1 amidst furious opposition from the Greek government.

So, who are the ratings agencies? The big three agencies are Fitch, Moody's and Standard & Poors. What they do is assess how likely a borrower is to be able to repay its debts and help those trading debt contracts in the secondary market.

More