Egan-Jones Rating Company - EJR


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.

  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Bond Rating

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

    A detailed report of an individual's credit history prepared ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has ...
  5. Weighted Average Credit Rating

    The weighted average of all the bond credit ratings in a bond ...
  6. Long-Term Debt

    Long-term debt consists of loans and financial obligations lasting ...
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  1. How many free credit reports can you get per year?

    Individuals with valid Social Security numbers are permitted to receive up to three credit reports every 12 months rather ... Read Full Answer >>
  2. Are high yield bonds a good investment?

    Bonds are rated according to their risk of default by independent credit rating agencies such as Moody's, Standard & ... Read Full Answer >>
  3. Do mutual funds invest only in stocks?

    Mutual funds invest in stocks, but certain types also invest in government and corporate bonds. Stocks are subject to the ... Read Full Answer >>
  4. 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 >>
  5. 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 >>
  6. 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 >>

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