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- Rating of Corporate Bonds is divided into 10 classes from AAA to D.
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| Rating |
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Definition |
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| AAA |
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Capacity for timely payment is extremely strong. |
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| AA |
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Capacity for timely payment is very strong, but somewhat less than 'AAA'. |
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| A |
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Capacity for timely payment is strong, but somewhat susceptible to external changes in the future. |
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| BBB |
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Capacity for timely payment is adequate, but more likely to be weakened by future market changes. |
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| BB |
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Capacity for timely payment faces no immediate problems, but speculative in its future stability. |
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| B |
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Capacity for timely payment is poor and speculative, and as of present time, no guarantee on future stability. |
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| CCC |
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Contain possibility of default. |
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| CC |
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Contain more possibilities of default than 'CCC'. |
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| C |
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Highly likely to be in default. |
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| D |
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In default as of present time. |
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- The ratings from 'AA' to 'CCC' may be modified by the addition of a plus(+) or minus (-) sign to show
- relative standing within the major rating categories.
- Rating of Commerical Paper is divided into 6 classes from A1 to D.
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| A1 |
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Capacity for timely payment is the strongest and hardly likely to be adversely affected by foreseeable events. |
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Invest Grade |
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| A2 |
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Capacity for timely payment is strong, but not as great as A1 ratings in terms of its safety. |
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| A3 |
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Capacity for timely payment is satisfactory but, not as great as A2 ratings in terms of its safety. |
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| B |
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Capacity for timely payment is adequate, but entails speculative factors in terms of its safety as more likely to be impaired by short-term drastic changes in circumstances and economic conditions. |
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Spec Grade |
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| C |
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Capacity for timely payment and its safety are very speculative. |
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| D |
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In default as of present time. |
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- The ratings from 'A2' to 'B' may be modified by the addition of a plus(+) or minus (-) sign to show relative
- standing within the major rating categories.
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