A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by a credit rating agency of the debt issuers likelihood of default. Credit ratings are determined by credit ratings agencies[1]Wikipedia – “Credit rating”, retrieved 2013-09-24.[2]External source, retrieved 2020-05-11..
Rating Category |
Description |
Value (pts.) | Wikirating | S&P Global | Scope | Moody's | Fitch | DBRS |
long-term | long-term | long-term | long-term | long-term | long-term | |||
Prime | An obligor has EXTREMELY STRONG capacity to meet its financial commitments. | 95 to 100 | AAA | AAA | AAA | Aaa | AAA | AAA |
High grade | An obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest rated obligors only in small degree. | 90 to less than 95 | AA+ | AA+ | AA+ | Aa1 | AA+ | AA (h) |
85 to less than 90 | AA | AA | AA | Aa2 | AA | AA | ||
80 to less than 85 | AA- | AA- | AA- | Aa3 | AA- | AA (l) | ||
Upper Medium grade | An obligor has STRONG capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories. | 75 to less than 80 | A+ | A+ | A+ | A1 | A+ | A (h) |
70 to less than 75 | A | A | A | A2 | A | A | ||
65 to less than 70 | A- | A- | A- | A3 | A- | A (l) | ||
Lower Medium grade | An obligor has ADEQUATE capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. | 60 to less than 65 | BBB+ | BBB+ | BBB+ | Baa1 | BBB+ | BBB (h) |
55 to less than 60 | BBB | BBB | BBB | Baa2 | BBB | BBB | ||
50 to less than 55 | BBB- | BBB- | BBB- | Baa3 | BBB- | BBB (l) | ||
Non Investmentgrade | An obligor is LESS VULNERABLE in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitments. | 45 to less than 50 | BB+ | BB+ | BB+ | Ba1 | BB+ | BB (h) |
40 to less than 45 | BB | BB | BB | Ba2 | BB | BB | ||
35 to less than 40 | BB- | BB- | BB- | Ba3 | BB- | BB (l) | ||
Highly Speculative | An obligor is MORE VULNERABLE than the obligors rated 'BB', but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitments. | 30 to less than 35 | B+ | B+ | B+ | B1 | B+ | B (h) |
25 to less than 30 | B | B | B | B2 | B | B | ||
20 to less than 25 | B- | B- | B- | B3 | B- | B (l) | ||
Extremely speculative | An obligor is CURRENTLY VULNERABLE, and is dependent upon favourable business, financial, and economic conditions to meet its financial commitments. | 15 to less than 20 | CCC | CCC+ | CCC | Caa1 | CCC+ | CCC |
An obligor is CURRENTLY HIGHLY-VULNERABLE. | 10 to less than 15 | CC | CCC | CC | Caa2 | CCC | CC | |
CCC- | Caa3 | CCC- | ||||||
The obligor is CURRENTLY HIGHLY-VULNERABLE to nonpayment. May be used where a bankruptcy petition has been filed. | 5 to less than 10 | C | CC | C | Ca | CC | C | |
C | C | |||||||
In default | An obligor has failed to pay one or more of its financial obligations (rated or unrated) when it became due. | 0 to less than 5 | D | SD/D | SD/D | C | RD/D | SD/D |
Not rated | No rating has been requested, or there is insufficient information on which to base a rating. | Not applicable | n.r. | n.r. | n.r. | n.r. | n.r. | n.r. |
Rating withdrawn | The credit rating was withdrawn. | Not applicable | r.w. | r.w. | r.w. | r.w. | r.w. | r.w. |
See also
- Crypto Rating Table (related to the evaluation of the cryptoasset ratings, like Bitcoin)
References[+]
↑1 | Wikipedia – “Credit rating”, retrieved 2013-09-24. |
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↑2 | External source, retrieved 2020-05-11. |