S&P : What Are Rating Criteria?

What Are Rating Criteria?

We use the term “criteria” generically to refer to the whole body of written guidance for our assignment of credit ratings. Such guidance includes a discussion of quantitative and qualitative elements, analytical methodologies, and assumptions that we use in the ratings process to produce our rating opinions. Our criteria may be global, regional, or local in scope, or apply to one or more industries, asset classes, or other subject areas. We refer to this body of guidance as “criteria.” Our rating committees assign ratings based on the application of criteria to the circumstances of an individual issuer or issue. Criteria provide general guidelines and tools to analyze risks that are common to a sector, region, asset class, or other subject area. We publish criteria on our public website to be transparent to the marketplace. In this article, we explain the different types of criteria, how we label them, and our criteria proces

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