S&P Rating

What is the S&P Rating?

The S&P Rating is a credit rating Standard & Poor’s assigned to a specific bond. It reflects the issuer's ability to fulfill its debt obligations regarding this specific financial instrument over a long period, typically a year or more. Ratings range from AAA, indicating exceptional reliability, to D, which denotes a default on obligations. 

Why is the S&P Rating important?

The S&P Rating is crucial because it gives investors and analysts a key indicator of the issuer's creditworthiness. A high rating indicates low credit risk, while a low rating may signal potential financial troubles and an increased risk of default.

Rating scale:

• AAA — Exceptional creditworthiness.
• AA, A — Strong creditworthiness, but susceptible to adverse conditions.
• BBB — Adequate creditworthiness, but more sensitive to economic conditions.
• BB, B — Speculative creditworthiness, potential financial difficulties.
• CCC, CC, C — High likelihood of default, dependent on favorable conditions.
• D — Default.
• NR — Not Rated.