This is the second highest rating you can possibly get!!!
- AAA: An obligor rated ‘AAA’ has extremely strong capacity to meet its financial commitments. ‘AAA’ is the highest issuer credit rating assigned by Standard & Poor’s.
- AA: An obligor rated ‘AA’ has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree. Includes:
- AA+: equivalent to Moody’s Aa1 (high quality, with very low credit risk, but susceptibility to long-term risks appears somewhat greater)
- AA: equivalent to Aa2
- AA-: equivalent to Aa3
- A: An obligor rated ‘A’ 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.
- A+: equivalent to A1
- A: equivalent to A2
- BBB: An obligor rated ‘BBB’ 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.
Non-Investment Grade (also known as speculative-grade)
- BB: An obligor rated ‘BB’ 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.
- B: An obligor rated ‘B’ 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.
- CCC: An obligor rated ‘CCC’ is currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.
- CC: An obligor rated ‘CC’ is currently highly vulnerable.
- C: highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations
- R: An obligor rated ‘R’ is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others.
- SD: has selectively defaulted on some obligations
- D: has defaulted on obligations and S&P believes that it will generally default on most or all obligations
- NR: not rated