Rating symbols, Financial Management

 

Rating Symbol

Capacity for Timely Repayment

Rating Symbol

Capacity for Timely Repayment

High Investment Grades:

 

 

 

AAA (Triple A)

Highest Safety

1

Very Strong Capacity

AA (Double A)

High Safety

2, 3, 4

Strong Capacity

Investment Grades:

 

 

 

A

Adequate Safety

5, 6, 7

Adequate Capacity

BBB (Triple B)

Moderate Safety

8, 9, 10

Inadequate Capacity

Speculative Grades:

 

 

 

BB (Double B)

Inadequate Safety

11, 12, 13

Poor Capacity

B

High Risk

14

Default

C

Substantial Risk

 

 

D

In Default

 

 

To reflect comparative standing within a category, a '+' (plus) or a '-' (minus) sign will be suffixed to the symbols given above.

Posted Date: 9/11/2012 1:22:35 AM | Location : United States







Related Discussions:- Rating symbols, Assignment Help, Ask Question on Rating symbols, Get Answer, Expert's Help, Rating symbols Discussions

Write discussion on Rating symbols
Your posts are moderated
Related Questions
Does is make any sense to calculate betas against local indexes when a company has a great part of its operations outside this local market? Both the betas calculated against l


PAMs are so structured that the repayments resemble traditional mortgages from the lenders' point of view and resemble GPMs from the borrowers' point of view. Thi

Explain about the liquidity premium theory of the term structure of interest rates. Liquidity premium theory: Liquidity premium theory asserts which, into a world of unce

Under what circumstances is a warrant's value high ?  Explain. A warrant's value would be elevated when the stock price, time to expiration, and/or expected stock price volatil

Degree of Operating Leverage A measure of the firm's operating leverage, which is calculated as the contribution margin distributed by income before taxes. A rigid with a high

How does accounts receivable factoring work?  What are the benefits to the two parties involved?  What are the risks? Factoring is when one firm trade accounts receivable (AR)

In order to provide for R10 million to build a new warehouse in 5 years time, a company plans to make equal payments at the end of each six months into a fund which earns 9% per ye

Define the term- Cost of capital Cost of capital is the rate of return a firm should earn on its investments for the market value of the firm to remain unchanged. Acceptance of

Risk of cost of capital A straightforward assumption of traditional cost of capital analysis is that firm's business and financial risk are unaffected by acceptance and financ