Credit rating is largely divided into ratings on issuers and ratings on issues. Issuers consist of financial organizations, companies including public enterprises, foundations and incorporated institutions including educational institution, and state and local governments.

Issuer credit ratings are indicators of an issuer’s creditworthiness and its ability to meet its financial obligations. Issuer credit ratings are based on the assessment of the overall debt repayment ability of an issuer on its financial obligations, regardless of the difference in repayment probability and characteristics of the financial obligation.

Issue ratings serve as a standard for bond ratings. That is, high-quality ABS bonds are assigned a credit rating that is higher than the issuer rating and subordinated bonds are assigned a rating that is lower than the issuer rating.