It is an evaluation made by a credit rating agency of the debt issuer's likelihood of default. Credit ratings are determined by credit rating agencies.
Minister of Finance Honourable Hiro Shigemoto says within short the Government will announce which company has been chosen to evaluate its credit worthiness.
The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies analysts.
"The credit rating is used by individuals and entities that purchase the bonds issued by companies and government to determine the likelihood that the government will pay its bond obligations.
"A sovereign credit rating is the credit rating of a sovereign entity such as a government. A credit rating of a country is also very important for foreign investors.
"The credit rating indicates the risk level of the investing environment of a country and is used by investors looking to invest. It takes political risk into account.
"The selection of a rating agency is a top priority for Government with respect to attracting foreign investment which will be another stimulation of the economy besides public sector investments already taking place into infrastructure," Minister of Finance Hon. Hiro Shigemoto said on Tuesday.
Government will have the option to preview the rating results before they are published by the rating agency.
In July the Minister of Finance along with his policy advisor Dwayne President and President of Artemis Partners John B. Watts III, on a fact-finding working visit to the United States met with three rating agencies, namely Fitch Ratings, Moody's Investors Service and Standard & Poor.
