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How does a credit rating agency differ from a credit bureau?

April 26, 2017agency Credit bureau Credit rating differ

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How does a credit rating agency differ from a credit bureau?

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A credit rating agency provides an opinion relating to future debt repayments by borrowers. A credit bureau provides information on past debt repayments by borrowers. Trade creditors are generally the main users of credit bureau information, while financial investors typically use credit ratings. Information relating to a company’s track record in debt servicing, supplied by credit bureaus, is one of the inputs that is used by a credit rating agency while assigning a rating.