AA+/Aa1

Posted in Finance, Accounting and Economics Terms, Total Reads: 732
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Definition: AA+/Aa1

It is the credit rating that can be assigned to a security or a bond by a rating agency. Highest rated bond is AAA as per S&P and Fitch, and Aaa as per Moody’s. Aa1 is notch below AAA and means that the issuer has a VERY STRONG capacity to meets its obligations. It is a measure of probability of default.

 

This rating represents prime-1 short term rating and represents the best ability to pay short term debt. Similar ratings in other credit rating agencies are:

Long term

Short term

Standard & Poor's

AA

A-1+

Moody's

Aa1

P-1

Fitch Ratings

AA

F1+

 

Such a rating represents strong shareholder support, credit enhancement. For example, Total’s A1 rating is due to diverse global portfolio, and the scale of its operations.

 

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