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Have ideas of investing in a firm’s shares? That’s when the corporate credit ratings help you. They give you an idea about how safe your investments are with the firm that you have invested your amount in and whether are not any profit is likely.

Corporate credit ratings are similar to individual’s credit ratings. It is just an account of the credit-worthiness of the investment. It gives you an idea of whether your money is invested in the right place for you to derive maximum benefits.

There are a variety of companies that issue the credit ratings. Three big credit rating agencies dominate over all other credit ratings. They are:

* Standard and Poor’s

* Fitch

* Moody’s

These three credit rating agencies’ ratings are mostly considered by the potential investors. They rate a corporate or industry depending on their performance in the financial market. Their ratings vary from AAA to D. Now the three agencies’ ratings differ among themselves too. For example Moody may rate a company as Aaa while Standard and Poor’s may rate the same company as AAA. There is not much difference. The only point to be noted is that the more the number of A’s the better the investment is and more likely to produce benefits for the investors. While AAA or Aaa states that the risk of your credit is almost zero, a ‘D’ states that the company is bankrupt or most unlikely to produce payments.

But the question that arises is whether the ratings specified by these agencies are genuine or not. The agencies charge the corporate or industry to rate them and with this arises the possibilities of a probable bribe or good-will that may result in the industry being rated a little bit more than it ought to. Thus the potential investors are requested to research behind the functioning of the industry thoroughly and not merely depend on the ratings issued by Standard and Poor’s or Fitch or Moody’s.

The ratings may bring about a lot of difference to the industry as a good rating may increase the access of market shares or may help you in bringing about some changes or alternatives in your marketing strategies. It is up to the companies to decide whether or not their credit ratings are to be made public or to be withheld as private or confidential. As there are pros and cons to almost everything in this world, there are pros and cons to the publicizing of the credit ratings too by the corporate or companies. A good rating can be publicized while a bad rating like a C or D may be withheld as private to earn more shareholders.