Find the Right Credit Rating Agency for Your Needs in the Philippines
Introduction
When it comes to getting a business loan or a credit card, you need to make sure that you are working with a reputable credit rating agency.
There are many credit rating agencies in the Philippines, but not all of them are created equal. Some are better at assessing your creditworthiness and providing you with the best possible interest rates.
It is important to do your research and find the right credit rating agency for your needs. Here are some of the most popular agencies in the Philippines:
1) CreditBPO
2) Credit Information Corporation (CIC)
3) BusinessMirror Rating Agency
4) Philippine Deposit Insurance Corporation (PDIC) Rating Agency
5) Oriental Credit Rating Corporation
Overview of Credit Ratings and Credit Rating Agencies
You may need to get a credit rating for your business, or you may just want to know your credit score. In either case, you need to know which credit rating agencies are legitimate and accredited by the SEC.
The three major credit rating agencies are Fitch Ratings, Moody's Investors Service, and Standard & Poor's. These agencies are accredited by the SEC and are therefore considered legitimate.
There are also a number of smaller credit rating agencies in the Philippines. These agencies may not be accredited by the SEC, so you need to be careful when choosing one.
Types of Credit Ratings
When looking for a credit rating agency, it is important to understand the different types of ratings that are available.
There are three main credit rating agencies that control 85% of the market: Moody's, Standard & Poor's, and Fitch. These agencies use a variety of ratings scales, which can be confusing for consumers.
The most common ratings scales are the Moody's scale, Standard & Poor's scale, and the Fitch scale. Each agency has its own definition of what each rating means.
There are also three Philippine credit ratings: Fitch (BBB Negative, Stable, Positive), Moody's (Baa3, Negative, Positive), and Standard & Poor's (BBB-, Stable, Positive). These ratings are based on the creditworthiness of Philippine borrowers.
Finally, it is worth noting that the list of countries by credit rating includes long-term foreign currency credit ratings. This list is a useful resource when comparing different countries' credit ratings.
Major Credit Rating Agencies in the Philippines
In the Philippines, the Securities and Exchange Commission (SEC) is responsible for regulating credit rating agencies. There are three major credit rating agencies in the world: Fitch, Moody's, and Standard & Poor's. The only domestic credit rating agency accredited by SEC is the Philippine Rating Services Corporation.
In the Philippines, upstart CreditBPO, tech takes the premiere spot as the first ever official Credit Rating Solutions for businesses accredited by SEC.
Understanding Credit Ratings in the Philippine Economy
Credit rating agencies (CRAs) analyze and evaluate the creditworthiness of an issuer and its debt instruments. They are important in any economy when it comes to assessing debtors and helping investors find reliable investments. In the Philippine economy, Fitch Ratings is a notable CRA that has given out ratings to entities here. For instance, a well-known Philippines entity featured on Fitch Ratings has a credit rating of BBB. Moody's also affirms the Philippines' Baa2 ratings with a stable outlook. Through the use of credit rating agencies, one can understand the level of risk associated with various types of debt instruments in the Philippine economy.
How to Interpret a Credit Rating for Your Business
To understand a credit rating, it is important to recognize that credit rating agencies require accreditation by the SEC. Agencies such as S&P Global, Moody's, or Fitch Ratings provide assessments based on both qualitative and quantitative attributes. The Rating Evaluation Service (RES) from credit rating firms in the Philippines is not a credit rating but provides you with an understanding of your business’s creditworthiness. Your RES can be used to determine if you are able to access necessary financing or attract investors.
FAQs About Credit Ratings and Rating Agencies in the Philippines
You may be wondering about the Philippine credit rating landscape. The pioneer domestic rating agency in the Philippines is PhilRatings. The requirements for credit rating agency accreditation are contained in a 2015 Securities and Exchange Commission circular. Moreover, the three biggest credit rating agencies worldwide are Fitch Ratings, Moody's Investors Service, and Standard & Poor's.
Conclusion
There are many credit rating agencies in the Philippines, and each one has its own strengths and weaknesses. It's important to find the right one for your needs, and to understand what each agency can and can't do for you.
Credit rating agencies can be a valuable resource when you're looking for a loan or trying to get your credit score back on track. By understanding what each agency offers, you can make sure you're getting the most accurate information possible.
