S&P Global Rating

Definition ∞ An S&P Global Rating is an assessment provided by S&P Global Ratings, a leading credit rating agency, that evaluates the creditworthiness of debt issuers and their financial instruments. These ratings offer an independent opinion on an entity’s ability to meet its financial obligations. They are widely used by investors to gauge investment risk and by companies to access capital markets. A higher rating generally indicates lower credit risk.
Context ∞ S&P Global Ratings are highly significant in traditional finance and are becoming increasingly relevant in crypto news as digital assets seek broader institutional acceptance. While S&P does not directly rate individual cryptocurrencies, it assesses companies and financial products involved in the digital asset space. A key debate involves how traditional credit rating methodologies can be adapted to evaluate novel digital asset structures and their associated risks. Future developments may include specialized rating criteria for compliant crypto products and blockchain entities.