What is a Securities Qualifier?
Miscellanea / / July 04, 2021
A securities rating agency are companies that are dedicated to evaluating the probability and relative risk of the capacity of the issuer of securities or securities placed in the stock market, in the payment of commitments on a date determined.
A rating assesses the degree of risk that a security or security has. For this reason, it is important that you know the degrees of risk before making any decision regarding an investment.
Alert: A rating cannot be considered as a recommendation to buy, sell or withhold the credit instruments to which it refers, since that the rating does not contemplate market prices, or the adequacy of its characteristics to the investment objectives of any investor.
To award an assignment to a company, rating agencies must evaluate the following factors:
- The ability and willingness to pay the interest and principal of the debt obtained
- The nature, characteristics of the obligation
- The protection that creditors have regarding bankruptcies, mergers, reorganizations, among others.
- The probability of default occurring.
The most important rating agencies in the country are the following:
• Standard & Poor's
• Fitch IBCA Mexico
• Qualifier Duff and Phelps de México