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These are credit ratings assigned by rating agencies signaling high credit worthiness and low default risk. They denote that the rated entity has enough cash reserves and financial backing to pay back the debt.
Credit rating agencies are institutions that assign ratings to companies, government and financial instruments based on their creditworthiness. Measure of creditworthiness is an indicator of the ability and willingness of the party to repay the debt and the probability of defaulting on the same. Usually ratings below a certain level are termed “non-investment grade”.
A+ and A1 are credit ratings assigned by rating agencies Standard & Poor’s and Moody’s respectively.
A+ is a long term rating from S&P. It measures the probability of default occurring in a period greater than 1 year. A rating of “A” as per S&P implies “Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances”. The suffix “+” indicates a relatively better standing within the broader rating category of “A”.
A1 is a long term rating (probability of default occurring in a period greater then 1 year) from Moody’s. Moody’s “A” rating belongs to the “upper medium grade” and such obligations are subject to low credit risk. The suffix “1” indicates that the rating ranks better within the generic “A” category of rating.