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Financial glossary


Rating agencies

Rating agencies are entities assessing the credit quality of issuers and securities and assigning ratings accordingly. The three main rating agencies are Moody’s, Standard & Poor’s and Fitch. Credit ratings measure the debtor’s probability of default. Analysis is based on qualitative and quantitative information.

Repurchase agreement

A repurchase agreement (REPO) is the combination of an asset sale with the commitment to repurchase it at a specified date and price. Similar to securitised lending, a REPO also enables the lender to have legal ownership of the security until the term of the transaction ends (the lender may therefore re-use this security for other REPO operations).