Borrower rating
Ability of a borrower to meet its financial obligations. As a rule, this is expressed in a specific rating awarded by specialist agencies (AAA, AA, etc.).
Investment grade:
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AAA
Highest quality with the lowest risk of defaulting on interest and capital repayments; borrower has an excellent financial standing
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AA
Very high quality; borrower has sufficient financial strength to meet its financial obligations
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A
Above-average quality; borrower has adequate financial strength to meet its financial obligations, but is somewhat susceptible to unfavorable changes in the economic environment
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BBB
Average quality; borrower has enough financial strength to meet its financial obligations, but is more susceptible to unfavorable changes in the economic environment
Non-investment grade (speculative investments):
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BB
Barely sufficient quality with speculative elements, borrower is beset with considerable uncertainty in respect of unfavorable economic conditions that could considerably weaken its financial strength.
- B; CCC; CC; C
- D: Default on payments