Egan-Jones Rating Company - EJR

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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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What is the relationship between the current yield and risk?

    The general relationship between current yield and risk is that they increase in correlation to one another. A higher current ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. How can I use the funds from operations to total debt ratio to assess risk?

    The funds from operations (FFO) to total debt ratio is used in fundamental analysis to determine a company's financial risk. ... Read Full Answer >>
  4. How stable are municipal bonds?

    Stability is relative in the municipal bond market. Municipal bonds tend to be safer than many other types of investments, ... Read Full Answer >>
  5. What does it signify if the term structure of an interest rate's curve is positive?

    When the term structure of interest rates is positive, it is a signal to economists the short-term yields on similar bonds ... Read Full Answer >>
  6. Where can I find information about corporate bond issues?

    Information about new and existing corporate bond issues is published regularly in financial newspapers, such as The Wall ... Read Full Answer >>

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