A credit rating relates to an enterprise’s credit worthiness and is conducted by independent financial analysis firms. Credit ratings and financial research help investors to assess the market value of the enterprise and the degree of investment risk that it presents.
Standard & Poor’s (S&P) and Moody’s are leading credit rating, research and risk analysis companies. The highest rating that they give for long-term debts is Aaa and the lowest is C. In addition to ratings, Moody's uses numerical modifiers (1, 2, 3), while S&P uses plus and minus signs.
The short-term ratings from these companies assess a company’s ability to repay its short-term debts. The A1/P1 ratings (highest rating) by Moody's and S&P respectively, indicate an excellent ability to repay short-term debt; the A2/P2 ratings indicate satisfactory ability and the A3/P3 ratings indicate an adequate ability to repay debts.
More information on the ratings definitions and criteria used by Moody’s and Standard & Poor's can be viewed on their websites at: www.moodys.com and www.standardandpoors.com
||Standard & Poor’s
|Credit Rating (CR)
|Last update for (CR)