HIGHEST CREDIT QUALITY:
ratings denote the lowest expectation of credit risk.
They are assigned only in case of exceptionally strong
capacity for timely payment of financial commitments.
This capacity is highly unlikely to be adversely affected
by foreseeable events.
HIGH CREDIT QUALITY:
ratings denote a very low expectation of credit risk.
The capacity for timely payment of financial commitments.
This capacity is not significantly vulnerable to foreseeable
ratings denote a low expectation of credit risk. This
capacity for timely payment of financial commitments is
considered strong. This capacity may, nevertheless, be
more vulnerable to changes in circumstances or in economic
conditions than is the case for higher ratings.
ratings indicate that there is currently a low expectation
of credit risk. The capacity for timely payment of financial
commitments is considered adequate, but adverse changes
in circumstances and in economic conditions are more likely
to impair this capacity. This is the lowest investment
ratings indicate that there is a possibility of credit
risk developing, particularly as a result of adverse economic
change over time; however, business or financial alternatives
may be available to allow financial commitments to be
met. Securities rated in this category are not investment
ratings indicate that significant credit risk is present,
but a limited margin of safety remains. Financial commitments
are currently being met; however, capacity for continued
payment is contingent upon a sustained, favorable business
and economic environment.
CC, C – HIGH DEFAULT RISK:
is a real possibility. Capacity for meeting financial
commitments is solely reliant upon sustained, favorable
business or economic developments. A ‘CC’ rating indicates
that default of some kind appears probable. ‘C’ ratings
signal imminent default.