Rating Categories
Rating CategoriesCBRS credit ratings provide an easily identifiable symbol of the level of creditworthiness of a particular issue and are comparable to ratings provided by other credit rating agencies. CBRS believes that the primary function of the rating is to permit investors, whether or not they are familiar with the issuer, to readily evaluate an issuer's creditworthiness by reference to a single objective standard.
Rating Definitions of Corporate DebtCommercial Paper/Short-term Debt * Highest Quality A-1+TM Very Good Quality A-1 Good Quality A-1(Low) Medium Quality A-2 Poor Quality A-3 Rating Suspended Suspended Unrated Long-term DebtHighest Quality A++TM Very Good Quality A+ Good Quality A Medium Quality B++ Lower Quality B+ Poor Quality B Speculative Quality C Default D Rating Suspended Suspended Preferred SharesCredit-Enhanced Preferred SharesP-1+ Highest Quality P-1TM Good Quality P-2 Medium Quality P-3 Lower Quality P-4 Poor Quality P-5 Rating Suspended Suspended The term "Suspended" indicates that the company is experiencing severe financial or operating difficulties of which the outcome is uncertain."(High)" and "(Low)" designation after a rating indicates an issuer's relative strength within a rating category.* Short-term rating categories are the same for corporate and government debt. |
Rating Definitions of Government DebtLong Term Debt Rating Highest Quality AAA Very Good Quality AA Good Quality A Medium Quality BBB Lower Medium Quality BB Poor Quality B Speculative Quality C Default D "(+)" and "(-)" designations after a rating indicate an issuer's relative strength within a rating catergory.Rating Definitions for Investment FundsSuperior Quality AAAi High Quality AAi Medium Quality Ai Low Risk BBBi Moderate Risk BBi High Risk Bi Speculative Ci Ratings Suspended Suspended Note: 1: "(High)" and "(Low) designations after a rating indicate the relative asset quality status of the fund within a rating catergory.Note: 2: The subscript "i" indicates that these ratings are investment fund ratings, and therefore should only be used to draw a comparison between other investment funds. Under no circumstances should these ratings be compared to the ratings of corporate or government debt instruments. The reason for this incomparability lies in the fact that investment funds do not guarantee principal and interest, while ratings on corporations and governments ascertain the ability to meet principal and interest payments. Moreover. CBRS Asset Quality Ratings do not address interest risk or market volatility. |
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