Market rating

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The market rating shows the forecast of the market participants regarding the expected default of states and companies. It is based on market data and is free of personal views.

As a reference for the design of default probabilities that will yield levels used by publicly traded bonds. The higher the probability of default expected by market participants, the higher the risk premium that market participants demand in order to take the risk of an investment. If the expected return (return) is set in relation to comparable investment opportunities, the rating assessment of the market participants is derived from this. In efficient markets with rationally acting market participants, the market rating is the result of all information available to the market participants and thus the best possible estimate of the probability of default of a debtor. The rating assessment of market participants is also referred to as a "true" credit rating .

A current market rating is usually more precise and available more quickly than a rating from rating agencies based on assessments and analyzes by experts.