Standard and Poors
The Standard and Poor's Corporation (also: S&P), a subsidiary of McGraw-Hill, is a company that performs financial research and analysis. It is best known for its S&P 500 stock market index. The company also ranks the credit-worthiness of borrowers using a standardized ratings scale.
The basic ratings are:
Investment Grade
- AAA - the best quality companies, reliable and stabile
- AA - quality companies, a bit higher risk than AAA
- A - economical position can affect to finance
- BBB - medium class companies, which are satisfactory at the moment
Non-Investment
- BB - more prone to changes in economy
- B - financial situation varies notieably
- CCC - very speculative bonds, a company's profit is low
- CC - same as CCC
- C - same as CCC
- CI = past due on interest
- D = very bad economical condition, almost in bankrupt
- NR
Ratings below BBB are non-investment grade junk bonds.
