There are “authentic” and “reference” credit ratingsBut how can you tell which ones are truly trustworthy?
Many Vietnamese traders use popular “Overseas FX rating information sites” that are created by private companies. These sites are often free and include various rankings, user reviews, and star ratings based on original standards.
But can you really trust them? How are they different from official ratings?
| Characteristics of Private Rating Sites | Description |
|---|---|
| Free to view | Easy-to-understand layout and user-friendly |
| Scoring system (10-level etc.) | Ratings are often undisclosed and sometimes vague or lacking transparency |
| User posts and impressions | Subjective comments may influence the ratings |
Private rating sites can be useful for reference.
However, since they are operated by private companies, their evaluation methods and criteria are not always disclosed. In other words, the rating may not be entirely trustworthy.
Many simply reflect Google search rankings or subjective opinions. Scores can be influenced by advertising or sponsorship arrangements.
Be aware that the rating might be adjusted based on advertising partnerships or promotional contracts.
So then, what’s an “authentic” rating?
S&P (Standard & Poor’s), Moody’s, and Fitch are globally renowned “credit rating agencies.”
They evaluate how trustworthy a country, company, or bank is from a third-party perspective, using numerical scores or ratings.
These ratings serve as important benchmarks for investors and financial institutions when deciding whether they can safely entrust their money.
They are widely recognized and trusted standards around the world.
| Official Rating Agencies | Features |
|---|---|
| Hold internationally recognized licenses | Registered with financial authorities in the US, EU, and Japan |
| Strict evaluation process | Examine financial statements, governance, and even cash flow |
| Used by investors and financial institutions | Used as key decision-making materials by banks and institutional investors |
They are widely trusted worldwide as a “financial report card.”
Private Agencies vs. Public Rating Agencies
| 項目 | Private Agencies | S&P / Moody’s / Fitch（格付機関） |
|---|---|---|
| Purpose of Evaluation | Reference information for users | Key decision-making material for investors and financial markets |
| Review Content | Licenses / reviews / proprietary indicators | Detailed examination of financials, business, profitability, governance, etc. |
| Official Registration | None (private companies) | Registered with financial authorities, SEC, ESMA, etc. |
| Credibility | Depends on operator’s policies | Based on international evaluation standards |
| Use by Financial Institutions | ✕ | ✓ (Essential for corporate bonds, loans, M&A, etc.) |
Why is this difference so important?
It’s not about simply feeling “safe” because of a high score.
What matters most is who evaluates it and what standards are used.
Private agency scores can serve as a reference, but if the evaluation criteria are unclear, there’s a risk of a false sense of security.
Ratings from S&P, Fitch, and others are assessed fairly and globally using uniform standards. As a result, many investors and banks actually rely on them when making financial decisions.
The Importance of a Critical Eye When Looking at Ratings
Who?
How?
For what purpose?
By considering these three questions, you’ll be able to distinguish between reliable information and ratings based only on image.
What kind of company can you really trust with your money? ▶︎