A credit rating is a standardized assessment of how likely a borrower (individual, company, or government) is to repay their debts. Rating agencies analyze financial health, debt levels, income stability, and repayment history, then assign a letter grade.
The scale typically runs from AAA (highest quality, lowest risk) down to D (default). Investment-grade ratings (BBB- and above) signal reliability. Below that, you are in "speculative" or "junk" territory — higher risk but potentially higher returns for investors.
Credit ratings affect everything. A country with a high rating borrows cheaply; a downgrade can trigger capital flight. In India, CRISIL, ICRA, and CARE are major rating agencies. Globally, Moody's, S&P, and Fitch dominate — controlling over 95% of the global ratings market. Their opinions literally move billions of dollars.