Significance of credit rating system and given credit ratings by the credit assessment institutions
Corporate Bill
Significance of credit rating system and given credit ratings by the credit assessment institutions
Type | Meaning |
---|---|
A1 | Best adequate repayment capacity and high stability |
A2 | Excellent adequate repayment capacity |
A3 | Fine adequate repayment capacity and possible to be influenced by transition of environment |
B | With a risk of having lower stability by environment |
C | High risk |
D | Currently in default (irredeemable) |
Issuer Rating
Significance of credit rating system and given credit ratings by the credit assessment institutions
Type | Meaning |
---|---|
AAA | Best capacity for repayment of principal and interest |
AA | Excellent capacity for repayment of principal and interest but slightly lower than the bond of AAA |
A | Good capacity for repayment of principal and interest with a possibility to be influenced by economic circumstance or environment |
BBB | Good capacity for repayment of principal and interest with a possibility to be reduced in repayment of principal and interest by economic circumstance or environment in future |
BB | No issue in repayment of principal and interest but may have a risk in future |
B | Lack of capacity for repayment of principal and interest and uncertain to interest payment in recession |
CCC | Unstable component in repayment of principal and interest and high risk of default |
CC | More risk than the above ratings |
C | High risk of default and no capacity for repayment of principal and interest |
D | Irredeemable |