Egan-Jones Rating Company - EJR

AAA

DEFINITION of 'Egan-Jones Rating Company - EJR'

A well-known rating agency that evaluates bonds of all kinds. Egan-Jones Rating Company (EJR) rates corporate debt of all kinds, from high-grade issues to high-yield debt. EJR is funded entirely by investors and not issuers, which prevents possible conflicts of interest when rating debt.

INVESTOPEDIA EXPLAINS 'Egan-Jones Rating Company - EJR'

EJR was founded in 1995 and was granted NRSRO status by the SEC in 2007. Sean Egan spoke to Congress regarding this matter in 2008, saying that issuers of complex securities were contributing to the conflicts by "shopping" for a rating among the various ratings agencies. He encouraged legislators to promote investor-funded agencies to combat this type of practice.

RELATED TERMS
  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Investment Grade

    A rating that indicates that a municipal or corporate bond has ...
  3. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  4. Credit Report

    A detailed report of an individual's credit history prepared ...
  5. Weighted Average Credit Rating

    The weighted average of all the bond credit ratings in a bond ...
  6. Insurance Company Credit Rating ...

    The opinion of an independent agency regarding the financial ...
Related Articles
  1. Junk bonds differ because of their issuers' credit quality.
    Bonds & Fixed Income

    Junk Bonds: Everything You Need To Know

  2. Bonds & Fixed Income

    Are High-Yield Bonds Too Risky?

  3. Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

  4. Personal Finance

    The Debt Ratings Debate

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center