Posted in Finance, Accounting and Economics Terms, Total Reads: 523
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:
Standard & Poor's
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.