Debt Negotiation

Specific bond debts owed by both governments and private corporations is rated by rating agencies, such as Moody's, Fitch Ratings Inc., A. M. Best and Standard & Poor's. The government or company itself will also be given its own abstracted rating. These agencies assess the ability of the debtor to honor his obligations and accordingly give him a confidence rating. Moody's uses the letters Aaa Aa A Baa Ba B Caa Ca C, where ratings Aa-Caa are qualified by numbers 1-3. Munich Re, for example, currently is rated Aa3 (as of 2004). S&P and other rating agencies have slightly differential systems using capital letters and +/- qualifiers.

Short Debt Negotiation of bankruptcy, it is scarce that debts are wholly or partially forgiven. Traditions in some cultures demand that this be done on a regular (often annual) basis, in codification to arrest systemic inequities between groups in society, or anyone becoming a specialist in holding baggage and coercing repayment. Under English law, when the creditor is deceived into forgoing payment, this is a crime: see Theft Execution 1978.