What Is Credit Piggybacking?
Credit rating (also known as credit rating, credit rating, and credit evaluation) is an independent and neutral professional rating agency that accepts the entrustment of rating objects. According to the principles of "independence, fairness, objectivity, and science," the laws and regulations on rating matters Based on scientific and rigorous analysis techniques and methods, the scientific research methods and methods are used to investigate, review, compare, measure and comprehensively evaluate the ability of rating objects to fulfill corresponding economic commitments and their trustworthiness. Intuitive symbols (such as AAA, AA, BBB, CC, etc.) indicate the evaluation results and are an evaluation behavior published to the public.
Credit rating symbol
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- Credit rating (also known as credit rating,
- Credit rating is
- AAA has a very strong ability to repay debt, which is the highest rating given by Standard & Poor's.
- AA's ability to repay debt is very strong, which is slightly different from the highest rating.
- A has strong debt repayment ability, but its debt repayment ability is more susceptible to external environment and debt than a higher-rated debt / issuer.
- The adverse factors of changing economic conditions.
- The BBB currently has sufficient debt repayment ability, but its debt repayment ability may be fragile if it is in poor economic conditions or external environment.
- Debt or issuers that obtain 'BB', 'B', 'CCC' or 'CC' ratings are generally considered speculative. The 'BB' level has the lowest level of speculation, and the 'CC' level has the highest level of speculation. Such debt may also have certain investment guarantees, but significant uncertainties or adverse conditions may weaken the role of these guarantees.
- BB relative to other speculative ratings,
- A-1 has a strong ability to repay debt, which is the highest rating given by Standard & Poor's. This rating can be added with a '+' sign to indicate that the issuer is extremely capable of repaying the bond.
- A-2's ability to repay debt is satisfactory. However, relative to the highest rating, its ability to repay debt is more susceptible to the adverse effects of changes in the external environment or economic conditions.
- A-3 is currently capable of meeting its debt. However, if economic conditions deteriorate or external factors change, its ability to repay debts may be weak.
- B's debt repayment ability is fragile and the speculative component is quite high. The issuer still has the ability to repay the debt, but the continuing significant unstable factors may make the issuer inadequate to pay the debt.
- C At present, it is possible to repay debts. Issuers must rely on good commercial, financial or economic conditions to be able to repay debts.
- R is currently being monitored due to its financial situation. During the supervised period, the supervisory authority has the power to determine that a debt has priority over other debts.
- SD / D debt default. When the debt is due and the issuer fails to repay the debt, Standard & Poor's will give a D rating even if the grace period has not expired. Unless Standard & Poor's believes that the debt can be repaid within the grace period. In addition, if an application for bankruptcy Or similar actions have been taken to prevent payment of the debt, Standard & Poor's will also give a D rating.