What Are A-Levels?

A type of credit rating, also known as: A rating. A rating assessment made by a credit rating agency on the debtor's ability to repay debts or the bond's solvency. Grade A indicates that the company's ability to repay principal and interest is higher than the middle and upper levels, that is, the ability to repay principal and interest is strong.

a grade

The traditional method of credit rating category

For Chinese companies

(A) AAA grade: good credit

Enterprises have high credit and low debt risks. This type of enterprise has an excellent credit history, good operating conditions, strong profitability, broad prospects for people, and uncertainty has minimal impact on its operations and development.

(Two) AA grade: good credit

The creditworthiness of the enterprise is high, and the debt risk is small. This type of business has an excellent credit history, good operating conditions, high profitability, and broad prospects for development. Uncertain factors have little impact on its operations and development.

(3) Grade A: Good credit

The creditworthiness of the company is good, and there is no problem in paying down debts under normal circumstances. This type of enterprise has a good credit history and operates in a virtuous circle, but there may be some uncertain factors affecting its future operations and development, which will further weaken its profitability and solvency.

(IV) BBB level: average credit

The credit level of an enterprise is average, and its ability to repay debts is average. The credit history of such enterprises is normal, but their operating conditions, profitability and future development are susceptible to uncertain factors, and their ability to pay their debts fluctuates.

(5) BB grade: Poor credit

The credit level of enterprises is poor, and their solvency is insufficient. Such companies have more bad credit records, and their future prospects are unclear, and they include speculative factors.

(6) Level B: Poor credit

The creditworthiness of enterprises is poor, and their ability to repay debts is weak.

(7) CCC level: poor credit

Corporate credit is poor, and there is almost no solvency.

(8) CC level: Extremely poor credit

Corporate credit is extremely poor and insolvent.

(9) Level C: No credit

The business has no credit.

(10) Class D: No credit

The company is on the verge of bankruptcy.

Not all credit ratings use this division. In addition, some companies use "+,-" symbols to fine-tune each level, indicating that they belong to the upper or lower limit of this level. From the perspective of foreign practice, the first four levels are usually designated as investment grade (AAA-BBB), and the last five levels are designated as speculative grade (BB-C). The investment level indicates that the returns are normal and the risk is small; the speculative level indicates that the returns are not guaranteed, but the risks are greater. For short-term debt, there are usually four levels. In China, the credit rating business started late, and the setting of credit rating levels is not uniform. There are basically two different approaches. One is the bank's internal credit rating. Generally, there are four levels, some are called special, first, second, and third; some are called A, B, C, and D.

A-class users have high credibility.