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Each agency applies its own methodology in measuring creditworthiness and uses a specific rating scale to publish its ratings opinions. Typically, ratings are expressed as letter grades that range, for example, from ‘AAA’ to ‘D’ to communicate the agency’s opinion of relative level of credit risk.
Credit ratings are expressed on the primary credit ratings scales featuring symbols “AAA” to “D” for Long-Term Credit Ratings, and “A1+” to “D” for Short-Term Ratings. 12. The primary credit rating scales may be used to provide Public or Private Ratings.
The international rating scale uses rating notch modifiers (plus (+) or minus (-) to reflect the strength within a rating category) to distinguish credit ratings within the category For example, the BBB ratings category, include the BBB+, BBB and BBB- ratings.
Credit risk expressed by ratings of the EuroRating credit rating agency is defined on a 20-grade scale – analogical to the traditional rating scale commonly used by other international credit rating agencies.
The rating scale, running from a high of Aaa to a low of C, comprises 21 notches. It is divided into two sections, investment grade and speculative grade. The lowest investment-grade rating is Baa3. The highest speculative-grade rating is Ba1.
Credit Ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured finance vehicles,
Credit ratings are predominantly provided by three main independent rating agencies, namely; Standard & Poor’s (S&P), Moody’s Investor Services (Moody’s), and Fitch IBCA (Fitch), although there are others. Although the agencies adopt different rating scales, there is equivalence across the scales which facilitates comparison such that a ...
