Credit Scoring is an objective methodology used by credit grantors to determine how much credit to grant to an applicant. Various factors like income, assets, employment history, residence stability, and past credit behavior are considered.
A rating agency is an organization that monitors the credit backing of bond issues and other forms of public borrowings. It also provides ratings on the risks involved in holding specific stocks. Well-known rating agencies include Standard & Poor's, Moody's, and Fitch.
