Fitch Ratings: AA-
Moody's Investors Service: Aa3
Standard & Poor's: AA-
How do I interpret credit ratings?
A credit rating is an independent assessment of the creditworthiness of a bond by a credit rating agency (principally Moody’s Investors Service, Inc., Standard & Poor’s Corporation and Fitch Ratings). It measures the probability of the timely repayment of principal and interest of a bond. The higher credit ratings, as shown below, indicate a higher probability of the investment being repaid. Generally, a higher credit rating make bonds more marketable.
The long-term credit rating symbols are generally assigned with "triple A" as the highest and "triple B" (or Baa for Moody’s) as the lowest in investment grade. Anything below triple B is commonly known as a "junk bond." The tables below provide descriptions of long-term and short-term ratings.
Long-Term Rating Categories
|Investment Grade||Aaa||AAA||AAA||Highest quality investment with least risk. Interest payments are protected by a large or exceptionally stable margin and principal is secure.|
|Aa||AA||AA||Judged to be of high quality. Fluctuation of margin is slightly higher than AAA or other long-term risks are slightly higher.|
|A||A||A||Upper medium grade obligations. Factors providing security for principal and interest are adequate|
|Baa||BBB||BBB||Medium grade neither highly protected nor poorly secured. Currently adequate protection but long-term susceptibility to interruption or impairment.|
|Non-Investment Grade||Ba||BB||BB||Some speculative elements. Protection is moderate. Future uncertainty toward fluctuations in coverage.|
|B||B||B||Lack characteristics of desirable investments. Assurance of protection and coverage small over time.|
|Caa||CCC||CCC||Poor standing. Uncertainty of current payment of principal and interest.|
|Ca||CC||CC||Highly speculative standing. Often in default with other market shortcomings.|
|C||C||C||Extremely poor prospects of even attaining real investment standing.|
|MIG-1||S&P-1||F-1||Very strong capacity to repay, high safety characteristics.|
|MIG-2||S&P-2||F-2||Satisfactory capacity to repay principal or interest.|
|MIG-3||S&P-3||F-3||Satisfactory capacity to repay, but coverage margin subject to fluctuations.|
|MIG-4||S&P-4||F-4||Speculative capacity to repay principal interest.|
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