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Finance: What is Bankruptcy?
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Finance: What is the Dow Jones Industrial Average?
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Finance: What is Fitch Investors Service? 6 Views


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What is Fitch Investors Service? Fitch Investors Service is a securities rating agency. Investors use Fitch to determine if they should or shouldn’t make an investment. Fitch bases its ratings on security sensitivity and debt and recommends investment grade and identifies non-investment grade securities.

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Transcript

00:00

Finance a la shmoop what is Fitch investors service? Google, Facebook, Amazon

00:10

the big three not least they are this week well for a much longer time Fitch

00:15

has been the third leg on the you know stool Moody's supports this leg standard [Fitch, Moody's and S&P shown on a stool]

00:22

and poors supports this leg and the big fat guy who sits right here yeah that's

00:27

you, you the big fat walletd bond investor who relies on the scores of

00:33

rating services in part like these to figure out how much risk premium you

00:38

should attach to the bonds you're buying or rather the interest rate rent you

00:42

should be charging the issuers for the privilege of renting your money

00:47

well distinctively for Fitch's rating service well it's owned mostly by Hurst

00:52

yes William Randolph flavored that Hurst you know rosebud [Man whispers rosebud]

00:58

yeah well that's William Randolph yeah first big swing and media mogul no other

01:04

kind of mogul you know if we lose a million dollars a year we'll have to

01:09

shut our doors you know a hundred years yeah that one all right well Fitch's is

01:15

a hundred-year-old global firm with feet in london and new york and well pretty

01:19

much everywhere people rent money in the form of bonds and after all that time [Fitch's locations appear across the map]

01:24

you'd think they could have come up with something a bit more creative than their

01:28

bond rating system right here this thing yeah

01:31

looks eerily similar to those of Moody's and Standard & Poor's hmm and well had

01:37

shmoop owned a bond rating service well we'd have had ratings like this [Shmoop ratings service appears]

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